Solareum, a trading bot based on Solana and operating through Telegram, has announced its permanent closure due to a lack of funding and a recent security incident.

Developers communicated the shutdown through the Solareum support channel on Telegram and also shared the information on Twitter via X, the co-founder of BONKbot. The team mentioned a combination of financial insufficiency, changing market conditions, and a recent security breach as the reasons for the closure.

Despite their attempts to secure more funding, adjust to market shifts, and enhance security measures, the team admitted that the lack of funds no longer allows them to guarantee user safety.

Solareum functioned as a crypto trading bot on Telegram, utilizing an EVM-SVM bridge to facilitate the buying and selling of Solana tokens based on certain parameters.

In March, the bot experienced a security breach that enabled attackers to drain wallets, resulting in the loss of over 2,800 SOL, equivalent to about $520,000, from numerous Solana users.

Initially, suspicions arose that the exploit was linked to the BONKbot trading bot. However, the BONKbot team denied involvement in the incident, attributing the exploit to another application on Solana.

The Solareum team clarified that they have not performed an exit scam and are not involved in stealing funds. They claimed that the exploit was part of a broader issue affecting various bots and decentralized applications.

Efforts are being made to freeze the stolen funds if they are moved to centralized exchanges by contacting relevant authorities. Users are advised to retrieve any data or assets associated with Solareum promptly, as all services and features will be discontinued in the following weeks.

Solana has recently become a target for meme coin speculators, attracting scammers to the ecosystem. One of the largest groups dedicated to a popular Solana wallet drainer kit boasts over 6,000 members, according to Chainalysis, a blockchain security company.

Blowfish, a Web3 security firm, identified two new Solana drainers capable of executing advanced attacks in February. With the rise in popularity of Solana, users are cautioned to be aware of the risks associated with investing in meme coins within the ecosystem.