Crypto wallets connected to Ross Ulbricht, the creator of the Silk Road marketplace, lost $12 million due to a misstep while trading a fan-made token called ROSS.
Blockchain analytics firm Arkham Intelligence shared the details in a January 30 post on X, explaining how the mistake led to a sudden drop in the token’s value.
The issue began when Ulbricht, or someone managing his wallets, set up a liquidity pool at the wrong price on the decentralized exchange (DEX) Raydium
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The same mistake happened again, resulting in a $10.5 million loss or about 35% of the token’s supply.
Arkham explained that instead of using the correct liquidity setup, the user created a pool using the wrong market-making method. This error made it easy for another bot to buy and sell the tokens, pushing ROSS down by 90%.
However, after losing 40% of the total supply, the wallets still hold around 10%, worth approximately $200,000.
The wallets involved in the transactions are listed as donation addresses on FreeRoss.org, a campaign run by Ulbricht’s family. They had received 50% of the ROSS token supply from its developer but lost a large portion due to these trading errors.
Recently, Ulbricht received a donation from the cryptocurrency exchange Kraken
$563.16M
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