Telegram trading bot Solareum shutters days after $520K exploit

Solareum, a Solana-based Telegram trading bot, has announced that it is permanently shutting down because of low funding and a recent security incident. The team cited a lack of funding, changing industry trends, and a recent security incident as reasons for its termination.

“It is with a profound sense of regret that we announce the closure of the Solareum project,” wrote the Telegram Solareum support channel creators, who shared on X by trading bot BONKbot co-founder King. sol on March 31.

They stated, “Unfortunately, as a result of a mix of insufficient funding, changing market patterns, and a recent security breach to our systems.”

The team stated that it is no longer able to “assure the safety of our users due to the lack of funds,” despite “concerted efforts to secure additional funding, adapt to market changes, and fortify our security measures.”

Security Flaw and Wallet Draining

Solareum, a Telegram messenger-based cryptocurrency trading bot, has set up a bridge between the Ethereum Virtual Machine and the Solana Virtual Machine to purchase and sell Solana crypto tokens based on predetermined parameters.

A security flaw in the trading bot occurred at the end of March, which allowed wallet drainers to take advantage of the weakness. According to BONKbot research, the wallet drainers associated with the trading bot that abused caused the loss of over 2,800 SOL, or approximately $520,000, from over 300 Solana users.

Previously, the scam believed to the work of the Telegram trading bot BONKbot. On March 30, the developers refuted this, stating that BONKbot is secure and that “there has been an exploit with another Solana app.” The Solareum staff declared that they “DO NOT steal money” and asserted that there has never been an exit scam.

However, many SOLAR users’ wallets had wiped out, and this is a component of a widespread vulnerability that is also affecting other bot projects and dapps,” it stated, eventually acknowledging, “There may be a chance we got compromised.”

Rising Concerns and Response to the Solareum Incident

According to the Solareum team, if the stolen money ever makes it to centralized exchanges, it has already notified authorities to have it blocked.

“We encourage users to retrieve any relevant information or assets as soon as possible, as we wind down all active services and functionalities associated with Solareum in the upcoming weeks,” the company stated.

Schemers have drawn Solana like moths to a flame as a result of the current surge in activity among meme coin investors. According to blockchain security company Chainalysis, more than 6,000 people have involved in one of the biggest online groups dedicate to a single well-liked Solana wallet draining kit. Furthermore, in February, Web3 security company Blowfish discovered two new Solana drainers capable of sophisticated attacks.