Ross Ulbricht Lost $12M in Solana Token Due to Liquidity Addition Error..

Ross Ulbricht, the founder of the infamous Silk Road marketplace or the operator of his wallet, has reportedly lost approximately $12 million due to an operational error on Pump.fun

How the Solana Loss Happened.

This financial setback happened when Ulbricht’s donation address inadvertently received 50% of the total supply of ROSS tokens, leading to a massive loss of $10.5 million,which accounts for 35% of the total ROSS supply due to the Solana loss.

The error stemmed from a liquidity pool (LP) addition mistake while interacting with the Solana-based decentralized finance (DeFi) platform. Ulbricht’s used the wallet connected to his donation address for the transaction that resulted in this unexpected loss. Despite the error, he still holds 10% of the remaining supply of ROSS tokens, which is significant given the token’s market potential.

Consequences of the $12M Loss on Ross Ulbricht’s Crypto Holdings.

The response to the loss, Ulbricht has since corrected the issue and successfully added LP to the Raydium centralized liquidity pool, which is a critical step in maintaining the token’s liquidity within the Solana network. This move has helped stabilize the remaining value of the ROSS tokens, allowing them to continue circulating in the ecosystem.

While the loss of $12 million is a major blow, Ulbricht’s remaining holdings and actions to rectify the liquidity problem have garnered attention from the crypto community. His ability to adapt and mitigate further risks could potentially help him recover from this significant financial mishap.

Other took advantage of the mistake. One report states that a MEV bought the dip and netted significant profit. It registered gains exceeding $100k as the token rebounded.

The founder of silk road who Donald Trump granted pardon after spending many years in prison.

According to Arkham Intelligence data, fourteen Bitcoin addresses linked to the Silk Road collectively hold $47 million in Bitcoin, confirming the figure from Grogan. The cluster of wallets identified as “Silk Road” on Arkham includes the account beginning in “1CQv” that Grogan shared in a screenshot, and which alone holds over $9 million in Bitcoin.