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Former Pump.fun Employee Arrested in UK Over Alleged $2 Million Theft

13d ago•

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Jarret Dunn, also known “STACCoverflow,” is now on bail in the United Kingdom after his recent detention. Dunn, one of the former employees of the Solana-based memecoin startup Pump.fun, was captured shortly after the platform suffered a hack.

Dunn’s arrest followed an extensive intelligence operation that monitored his movements through social media and other open sources.

Also Read: Solana Surges High as Robinhood Launches SOL Staking in Europe

Dunn Confesses to $1.9 Million Exploit on Pump.fun

On May 16, using the STACCoverflow social media account, Dunn confessed to an attack on the Pump.fun that led to about $1.9 million in losses. Pump.fun confirmed Dunn’s claim and revealed that the former worker used his leverage his position to draw down cash and exploit the protocol.

“At 15:21 UTC, a former employee, having illegitimately taken access of the withdraw authority using their privileged position at the company, used flash loans on a Solana lending protocol.”

Dunn Reveals Details of Arrest and Charges

After he confessed, Dunn tweeted on May 18 that he had been in jail the whole night before. He revealed that Pump.fun had accused him of $2 million theft and conspiracy to the steal an additional $80 million. Dunn said that the company highlighted the total value locked (TVL) as their income in the charges against him. He advised users to redeem their funds from the site and revealed that Baton Corp is the corporate name of Pump.fun.

I am once again without any of my 2fa for a lil while. I spent overnight in custody as the pump team alleges I stole 2m of their Ill gotten gains with conspiracy to steal another 80m.

/x https://t.co/D8CBjdB9nG
— free stacc (@jarettdunn) May 18, 2024

Reports also suggested that the police traced Dunn through his online presence. His Instagram post revealed that he was in London and the timing of his posts on his STACCoverflow account also coincided with his apprehension.

Also Read: Robinhood crypto launches Solana staking in Europe with 5% APY

Dunn Discusses Health Issues and Bail Conditions

After being granted bail, Dunn said he was in a hospital being treated for mental health issues and he may not be well enough to undergo a police interview. However, he is supposed to remain in the United Kingdom until August 16 to report at the police station.

My mental health was taken into question and I am likely unfit for interview and so my interview will probably be after bail if I am fit. Time will tell. I have my passport and have not been cautioned not to leave the uk.
— free stacc (@jarettdunn) May 19, 2024

Pump.fun confirmed the exploit in a recent release, stating that the ex-employee was responsible for the attack. The company narrated that Dunn used flash loans from a Solana lending protocol to fraudulently pull out the fund from its protocol. Dunn’s case is still being investigated and legal proceedings are still underway.