🐶 Ross Ulbricht, the creator of the Silk Road darknet market, who was recently pardoned by Trump, lost $12 million in ROSS tokens due to an error when selling through DEX.
▪️The tokens were donated to him by the creators of the project, who transferred as much as 50% of the emission to his address.
▪️Ulbricht tried to pour liquidity through the Raydium platform, but something went wrong.
Instead of the CLMM model, he used CPMM, which led to the placement of liquidity in a certain range at too low a price.
▪️As a result, MEV bots quickly bought up most of the tokens, making money on arbitrage.
▪️The first attempt to add liquidity resulted in bots buying up 5% of the token supply (around $1.5 million) for pennies, which immediately flew into the glass.
▪️The second attempt saw another 35% of the tokens (around $10.5 million) flooded. As a result, the ROSS price fell by 95%.
In 2013, Silk Road was shut down by US intelligence agencies, and Ulbricht was arrested and convicted of criminal activity, receiving two life sentences and an additional 40 years in prison.
