In a surprising turn of events, crypto wallets linked to Ross Ulbricht, the recently pardoned creator of Silk Road, have reportedly lost $12 million in value on the platform Pump.fun. According to Arkham Intelligence, this significant loss occurred as a result of an unfortunate liquidity provision attempt on the Raydium platform.
The Incident Explained
Arkham Intelligence detailed that Ulbricht, or someone with access to his wallets, inadvertently “nuked the price” of a Pump.fun coin that had been sent to him. The mishap unfolded when he initialized a liquidity pool at the wrong price, leading to a series of unfortunate events. Initially, $1.5 million worth of the token, representing 5% of the supply, was swiftly taken by a MEV Bot and sold into the existing pool. This was just the beginning; a subsequent attempt resulted in a staggering loss of $10.5 million, or 35% of the supply.
ROSS ULBRICHT LOST $12M ON PUMPFUN...
— Arkham (@arkham) January 30, 2025
Ross Ulbricht, or someone with access to his wallets, just accidentally nuked the price of a pumpfun coin sent to him while trying to provide liquidity on Raydium.
Because he initialized the liquidity pool at the wrong price, $1.5M of the… pic.twitter.com/kN5BN2mN49
Background on Ross Ulbricht
Ross Ulbricht’s story is one of controversy and complexity. After serving 11 years of multiple life sentences for his role in creating and operating Silk Road, Ulbricht was granted a full and unconditional pardon by President Donald Trump just over a week ago. To many in the cryptocurrency community, Ulbricht is viewed as a hero, symbolizing the fight for digital freedom and privacy.
The Impact of the Loss
According to Arkham, a Solana donation address associated with Ulbricht received 50% of the supply of a new token called ROSS (Ross Ulbricht Fund) from its developer last week. However, the recent liquidity mishap has severely impacted the token’s value. The MEV Bot that seized the coins managed to sell them off for over $600,000, resulting in a dramatic 90% drop in the token’s price.
Despite these setbacks, Ulbricht still retains 10% of the token in a separate address, indicating that while the losses are significant, he has not completely lost his stake in the project.
Conclusion: A Cautionary Tale in Crypto
This incident serves as a cautionary tale in the volatile world of cryptocurrency, where even well-known figures can face unexpected challenges. The loss of $12 million linked to Ulbricht’s wallets highlights the risks associated with liquidity provision and the potential for automated trading bots to exploit mispriced assets.
As the crypto community continues to navigate these turbulent waters, the story of Ross Ulbricht remains a focal point of discussion, raising questions about the intersection of justice, innovation, and the future of digital currencies.