Former Solana-based Memecoin Launchpad Employee Arrested

Jarret Dunn, also known  “STACCoverflow” is now on bail in the United Kingdom after his recent detention. Dunn, one of the former employees of the Solana-based memecoin startup Pump.fun, was captured shortly after a significant hack on the startup. 

The apprehension followed an extensive intelligence operation that monitored Dunn’s movements of Dunn through social media and other open sources.

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Dunn Confesses to $1.9 Million Exploit on Pump.fun

On May 16, using the STACCoverflow social media account, Dunn confessed to an attack on the Pump.fun that generated about $1.9 million in losses. Pump.fun confirmed Dunn’s claim and revealed that the former worker used his post to draw down cash and to exploit the systems of the platform. The company claimed that the former employee was able to access the withdrawal authority through their privileged position and carried out flash loans on a Solana lending protocol.

“At 15:21 UTC, a former employee, having illegitimately taken access of the withdraw authority using their privileged position at the company, used flash loans on a Solana lending protocol.”

Dunn Reveals Details of Arrest and Charges

After he confessed, Dunn tweeted on May 18 that he had been in jail the whole night before. He revealed that Pump. fun had accused him of $2 million theft and conspiracy to the additional $80 million. Dunn said that the company highlighted the total value locked (TVL) as their income in the charges against him. He advised users to redeem their funds from the site and revealed that Baton Corp is the corporate name of Pump. fun.

Reports also suggested that the police traced Dunn through his online presence. His Instagram post revealed that he was in London and the timing of his posts on his STACCoverflow account also coincided with his apprehension.

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Dunn Discusses Health Issues and Bail Conditions

After being granted bail, Dunn said he was in a hospital being treated for mental health issues and he may not be well enough to undergo a police interview. However, he is supposed to remain in the United Kingdom until August 16 to report at the police station.

Pump.fun stated in a release that the exploit was confirmed and that it was the ex-employee that had carried out the attack, describing the manner in which this was done. However, the company emphasized that the ex-employee engaged flash loans on a Solana lending protocol to fraudulently pull out the fund. Dunn’s case is still being investigated and legal proceedings are still underway.

Cryptopolitan Reporting by Lawrence Damilola