Solana developers are forking the FTX-developed token liquidity hub Serum after a possible FTX attack.
On Friday, an unlawful withdrawal of more than $400 million was made from FTX by a hacker. The scenario intensified the exchange’s money troubles, causing it to seek Chapter 11 bankruptcy protection.
Numerous Solana developers think that the breach may have also affected Serum, a well-known protocol created by FTX and used by numerous Solana blockchain applications.
Today, developers are scrambling to fork Serum’s code and restart the protocol without the participation of FTX, according to Solana’s creator, Anatoly Yakovenko. Because the original Serum can only be upgraded using a private key owned by FTX and not the Serum DAO, developers require a new version. This key may have been compromised as a consequence of the FTX breach.
“As far as I know, the serum developers are forking the software since the upgrade key to the current version has been hacked,” Yakovenko stated.
“An FTX-related private key was in charge of updating the serum program, rather than the serum program’s own administration. At this time, nobody knows who has this key and thus has the ability to update the serum program, potentially deploying malicious code,” a developer with the alias Mango Max stated, adding that he is directing the Serum fork project.
Several Solana applications that are known to depend on Serum have begun restricting their exposure. Due to security concerns, Jupiter, the biggest DEX aggregator exchange on Solana, informed its users that it was suspending the usage of Serum’s liquidity.
Due to security concerns, more projects, including Magic Eden, Mango Markets, and Phantom, have announced they would no longer depend on Serum for liquidity and have suspended its usage.
Also Read: The Chief Executive Officer of Crypto.com Discusses the Fall of the FTX Empire
