The decentralized trading protocol Raydium on the Solana ecosystem has confirmed a security incident involving the defunct Legacy AMM V3 program, resulting in the theft of approximately $1.34 million in assets. According to the official announcement from the development team, the cause stemmed from a vulnerability in the LP Mint validation mechanism, allowing attackers to bypass asset liquidation ratio checks and carry out unauthorized mining.
Raydium stated that the incident only affected pools on the Legacy AMM V3 version that are no longer in use on the Primary Network. The project's current products, including the operational mainnet, the SDK for developers, and the DApp platform, remain operational and were not affected by the attack.
Initial analysis suggests the attacker exploited a vulnerability in the LP Token verification process to create invalid liquidation status. This allowed them to withdraw assets from affected pools without fulfilling the Capital liquidation conditions designed to protect the protocol. The total estimated loss is approximately $1.34 million.
It's noteworthy that the exploited pools all belonged to the Legacy AMM V3 system, which has been replaced by newer versions. In recent years, Raydium has continuously upgraded its infrastructure to meet the rapid growth of the Solana ecosystem, especially after the meme coin trading boom and the strong growth in volume on the network from late 2024 to the present.
Immediately after discovering the incident, the Raydium team implemented emergency measures to prevent further spread and conducted a comprehensive investigation to determine the exact method of attack. The project also affirmed that it would use its funds to fully compensate users affected by this exploitation.
In addition to the compensation plan, Raydium is conducting a security review of all active programs on the mainnet to ensure that similar vulnerabilities no longer exist. This is XEM a necessary step given that DeFi protocols are increasingly becoming targets of sophisticated hacker attacks.
