"Silk Road" founder Ross related wallet lost about $12 million in Raydium due to wrong operation
According to Arkham, Ross Ulbricht or someone with access to his wallet caused significant losses when Raydium provided liquidity by incorrectly setting the initial price of the liquidity pool.
Specifically, $1.50 million (5% of the total token supply) was immediately arbitraged by the MEV robot and dumped in the existing pool. This was followed by a loss of about $10.50 million (35% of the total token supply) in the second operation.
It is reported that Ross Ulbricht received a 50% supply of ROSS (Ross Ulbricht Fund) tokens from developers last week. Despite losing 40% of the token supply, Ross still holds 10% of the tokens at another address and has correctly added liquidity in the Raydium centralized liquidity pool.