#ROSSCoin
Silk Road Founder Ross Ulbricht Suffers $12 Million Loss in
Crypto Mishap
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Ross Ulbricht, the founder of the infamous Silk Road marketplace who was recently pardoned, has reportedly incurred a staggering $12 million loss due to a critical error in handling cryptocurrency. This mishap led to a dramatic 90% decline in the value of the ROSS token, according to blockchain analytics firm Arkham Intelligence.
The issue arose when Ulbricht—or an individual with access to his digital wallets—attempted to add liquidity for the ROSS token on the decentralized exchange Raydium. In doing so, they inadvertently set the wrong price while initializing the liquidity pool, triggering immediate exploitation by a Maximal Extractable Value (MEV) bot. The bot swiftly purchased $1.5 million worth of tokens (representing 5% of the total supply) and dumped them back into the pool for a profit, causing a rapid devaluation.
Compounding the mistake, the same wallet repeated the error, resulting in an additional $10.5 million loss, or roughly 35% of the ROSS token supply. According to Arkham, this occurred because the liquidity was added using Raydium's Constant Product Market Maker (CPMM) model instead of the more precise Concentrated Liquidity Market Maker (CLMM). This opened the door for the MEV bot to exploit the mispricing once again, pocketing over $600,000 in profits while the token’s value plummeted.
Despite these setbacks, ROSS is currently trading at around $0.01, reflecting a surprising 700% surge over the past day, as per DEX Screener data. Arkham flagged the wallet addresses linked to Ulbricht, which are publicly listed on FreeRoss.org, a campaign advocating for his release. Even after the losses, these wallets still hold approximately 10% of the ROSS supply, valued at around $200,000. This incident highlights the complexities and risks associated with decentralized finance (DeFi) platforms, even for well-known figures in the crypto space.
#CryptoNews #DeFiMishap #RossUlbricht #ROSSCoin
