Cryptocurrency exchange loses $ 661,000 due to a single developer error

OptiFi, a decentralized exchange based on the Solana blockchain, lost $ 661,000 after the platform’s developers accidentally closed the OptiFi app during an update.

According to OptiFi’s Twitter account, the developers were trying to install an update to the exchange’s application, but due to network congestion, the process took longer than usual. The developer stopped the update process before it was complete and shut down the main program instead of closing the buffer account.

OptiFi's program has been closed by mistakes we made.

TL;DR

1. We accidentally closed the OptiFi mainnet program and it's not recoverable
2. 661k USDC is locked in the PDAs, luckily 95% of the fund is from our team member
3. We will compensate for all users' funds

— OptiFi (@OptifiLabs) August 29, 2022

Due to such actions of the developer, the platform lost access to $ 661,000, 95% of which was provided to OptiFi by a member of the exchange team. Representatives of OptiFi promised to take all possible measures to avoid a repeat of the situation in the future. The developers also advised Solana to add descriptions to programs to warn about the consequences of their closure and add a two-step confirmation for the «solana program close» command.

As a reminder, the loss of $ 661,000 is not the only unpleasant incident that occurred on the Solana blockchain. In early August, 9,232 wallets on the Solana network were affected by a cyberattack. However, at that time, security researchers recognized the Solana team as not involved in the hack — representatives of the Slope and Phantom wallets were called guilty. However, the Slope Wallet cryptocurrency wallet team published its own research into the causes of the hacker attack and denied any involvement in the incident.