Raydium Treasury to Cover $1.34M Loss After Exploit Hits Legacy Liquidity Pools
A security breach targeting outdated infrastructure at Solana-based decentralized exchange Raydium resulted in the theft of more than $1.34 million worth of crypto assets, according to the protocol's team.
The incident affected five legacy liquidity pools tied to Raydium’s deprecated Automated Market Maker (AMM) V3 program, which had been phased out several years ago. The attacker exploited a flaw in the obsolete codebase, enabling the unauthorized creation of liquidity provider (LP) tokens and the subsequent withdrawal of assets from the affected pools.
Raydium representatives stated that the exploit was isolated to retired liquidity pools and did not impact users interacting with the platform’s current products. The affected pools had long been removed from Raydium’s user interface, preventing active traders from accessing them through standard channels.
Blockchain data indicates that the attacker siphoned approximately $900,000 in USDC, $357,000 worth of SOL, and around $86,000 in RAY tokens. Raydium confirmed that impacted liquidity providers will be reimbursed using funds from the project’s treasury.
According to the team, the breach stemmed from weaknesses in the legacy AMM program rather than any compromise of administrative controls or private keys. Raydium emphasized that its current mainnet infrastructure contains safeguards designed to prevent similar vulnerabilities.
The attack adds to a growing list of security incidents across decentralized finance in 2026, as hackers continue to target smart contract weaknesses and aging protocol components. Recent exploits affecting major crypto projects have highlighted the risks associated with dormant code and legacy systems that remain accessible on-chain.
The incident also arrives amid increasing industry discussion about artificial intelligence and its role in cybersecurity. While there is no indication that AI tools were involved in the Raydium exploit, security researchers have increasingly pointed to advanced AI models as powerful tools for identifying vulnerabilities in blockchain protocols and smart contracts.
Following news of the breach, Raydium’s native RAY token recorded modest losses, extending its recent decline during a broader crypto market downturn. Despite the setback, the protocol maintained that its active trading infrastructure and current liquidity programs remain secure and unaffected by the exploit.