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- Ross Ulbricht’s memecoin enterprise resulted in a $12 million loss
- Whereas trying to supply liquidity on Raydium, he by chance triggered a worth drop of a Pumpfun coin
- He nonetheless holds 10% of the ROSS tokens
Apparently, Ross Ulbricht suffered a $12 million loss from a Pump.enjoyable memecoin when he inadvertently triggered a worth drop whereas trying to supply liquidity on Raydium.
On account of an incorrectly initialized liquidity pool worth, an MEV bot immediately seized $1.5 million price of the token (5% of the provision) and offered it. A second error triggered one other $10.5 million loss (35% of provide).
How the Mistake Occurred
Final week, Ross Ulbricht’s Solana donation tackle obtained 50% of the ROSS (Ross Ulbricht Fund) provide from the developer. His try and passively promote these tokens by including single-sided liquidity backfired when he mistakenly created a pool with Raydium’s Fixed-Product Market Maker (CPMM) as a substitute of the supposed Concentrated Liquidity Market Maker (CLMM).
That mistake opened the door for an MEV bot, which swooped in, liquidated its holdings, and profited $600,000—sending the token worth plunging 90%. Even after shedding 40% of provide, Ulbricht nonetheless holds 10% in a separate pockets, this time utilizing concentrated liquidity appropriately. That remaining portion is price round $200,000.
Who’s Ross Ulbricht?
Ross Ulbricht is an American entrepreneur and convicted felony, greatest referred to as the founder and operator of Silk Street—an notorious darknet market that facilitated nameless drug gross sales and different illicit transactions utilizing Bitcoin.
Silk Street launched in February 2011 and rapidly grew to become a hub for purchasing and promoting unlawful medicine, pretend IDs, hacking instruments, and different illegitimate items. It used Tor for anonymity and Bitcoin for transactions, making it troublesome for legislation enforcement to hint customers.
Associated: A Second Probability at Freedom: Ross Ulbricht’s First Put up After Presidential Pardon
At its peak, Silk Street dealt with $1.2 billion in gross sales, incomes Ulbricht an estimated $80 million in commissions. Whereas Silk Street’s operations had been unlawful, it helped showcase Bitcoin’s potential as a digital foreign money.
Associated: Trump Pardons Ross Ulbricht, Ending Life Sentence for Silk Street Crimes
Ulbricht was arrested in 2013, and in 2015, he was sentenced to life in jail with out parole.
In January 2025, he walked free after receiving a full and unconditional pardon from President Donald Trump.
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