Recent events highlighted significant losses for wallets linked to the recently pardoned Ross Ulbricht after a memecoin trading error.
The ROSS Memecoin Trading Error
According to Arkham Intelligence, wallets associated with Silk Road's former head Ross Ulbricht lost $12 million due to a trading error with the ROSS memecoin on the decentralized exchange Raydium. The mistake involved improperly setting liquidity, allowing a MEV bot to instantly buy 5% of the token supply.
Repeat Mistake and Major Losses
Following the initial error, the same wallet repeated the mistake, resulting in a further $10.5 million loss, about 35% of the token supply. Arkham explained the user tried to add single-sided liquidity but wrongly created a pool with Raydium's CPMM, leading to advantages for the MEV bot.
Consequences and Current Status
As a result of the bot's actions, the value of the ROSS token dropped significantly. Despite heavy losses, the wallets linked to Ulbricht still hold around 10% of the token supply, valued at $200,000. The address is also used for collecting donations on FreeRoss.org.
These developments underscore the risks associated with operations in decentralized financial systems and memecoins. Despite the losses, wallets linked to Ulbricht remain a significant part of the ROSS token ecosystem.
