The world of cryptocurrency has once again been rocked by a high-profile exploit, this time involving the Solana-based memecoin platform Pump.fun.
At the center of the controversy is Jarett Dunn, a former employee of Pump.fun who claims responsibility for the $1.9 million exploit that occurred on May 16th.
TLDR
- Jarett Dunn, also known as “STACCoverflow,” claims to be the person behind the $1.9 million exploit of the Solana-based memecoin platform Pump.fun.
- Dunn claims he was arrested in the UK, spent a night in custody, and is currently out on bail and residing in a hospital due to mental health concerns.
- Dunn alleges that Pump.fun engaged in shady practices, including operating as an unregistered securities exchange or gambling site, lacking proper KYC and AML protocols, and potentially employing overseas workers.
- Dunn threatens legal action against Pump.fun, accusing the platform of various misconduct, including alleged child abuse intentions, though he provides no concrete evidence.
- The case highlights the often-murky ethical landscape surrounding crypto hacks, with some hackers claiming to be motivated by a desire to challenge and expose alleged wrongdoing.
Dunn, who goes by the online moniker “STACCoverflow,” alleges that he used his privileged position within the company to access a “withdraw authority” and compromise Pump.fun’s systems.
However, in a surprising twist, Dunn isn’t pleading innocence or trying to lay low. Instead, he has taken to social media to accuse Pump.fun of engaging in shady practices and alleged misconduct.
I am once again without any of my 2fa for a lil while. I spent overnight in custody as the pump team alleges I stole 2m of their Ill gotten gains with conspiracy to steal another 80m.
— free stacc (@jarettdunn) May 18, 2024
According to Dunn’s claims, he was arrested in the United Kingdom shortly after the exploit and spent a night in custody.
He was reportedly charged with “theft from employer” for $2 million and conspiracy to steal an additional $80 million. Dunn alleges that he has been released on bail and is currently residing in a hospital due to mental health concerns.
While Pump.fun has not yet responded to Dunn’s allegations, the former employee has painted a picture of a potentially fraudulent operation.
He claims that Pump.fun was operating as an unregistered securities exchange or gambling site, lacking proper Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols.
These accusations raise serious concerns about the platform’s adherence to financial regulations and the potential for illegal activities.
Dunn’s allegations go beyond financial misconduct. He claims that Pump.fun was blacklisted in Saudi Arabia for operating as a casino and accuses the platform of misleading investors by presenting a minimal staff structure while potentially employing overseas workers.
In one of the most shocking allegations, Dunn insinuates that Pump.fun may have had “child abuse intentions,” though he offers no concrete evidence beyond the possibility of a subpoena for Telegram communications.
As the case unfolds, it highlights the often-murky ethical landscape surrounding crypto hacks and exploits.
While some view these actions as simple theft, others argue that they serve as a form of vigilante justice, exposing and challenging alleged wrongdoing within the industry.
Dunn’s approach appears to align with the latter perspective. Rather than attempting to conceal his identity or flee, he has chosen to confront Pump.fun head-on, threatening legal action and rallying for UK citizens to file charges against the platform’s alleged corporate entity.
It’s important to note that the legitimacy of Dunn’s claims has yet to be investigated, and Pump.fun has not provided a response to the allegations.
However, the case serves as a reminder of the ongoing challenges and controversies surrounding the regulation and oversight of the cryptocurrency industry.
As the investigation continues, it remains to be seen whether Dunn’s actions will be viewed as a justified effort to expose alleged misconduct or as a criminal act motivated by personal gain.
Regardless of the outcome, the case is likely to reignite debates about the ethical boundaries of crypto exploits and the need for greater transparency and accountability within the industry.
