Based on the Arkham report, Ross Ulbricht or someone managing his Solana donation wallet lost $12 million attempting to provide liquidity for the ROSS token names after him on Raydium
The mistake started when Ulbricht’s wallet randomly received 50% of the total ROSS token supply. Instead of manually selling the tokens, Ulbricht opted to add liquidity in Raydium. Unfortunately, he used the wrong liquidity pool setup.
Ulbricht could have utilized a Concentrated Liquidity Market Maker (CLMM) but instead made use of the Constant-Product Market Maker (CPMM), which allowed a Maximal Extractable Value bot to seize the opportunity and drain tokens worth $1.5 million.
But after the first mishap, Ulbricht made the same mistake again, resulting in an additional $10.5 million loss. In total, 40% of the total ROSS token supply vanished. The bot sold the drained tokens for over $600,000, which caused the value of the ROSS token to crash by 90%.
Despite the losses, Ulbricht’s donation wallet still holds 10% of the total ROSS supply, which is now valued at about $200,000. He later corrected the mistake and successfully added liquidity to a Raydium CLMM pool, stabilizing the remaining tokens.
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