Ross Ulbricht’s wallets lost $12M due to a trading mistake involving ROSS memecoin, highlighting crypto market risks - IcoHolder.
Cryptocurrency wallets linked to Ross Ulbricht, the infamous figure behind the Silk Road black market, have suffered a staggering loss of $12 million due to a trading mistake involving ROSS, a fan-made memecoin. The news, reported by blockchain analytics firm Arkham Intelligence, reveals a series of events that led to this financial mishap as ROSS saw a sharp 48.35% price drop in the past week.
Arkham Intelligence’s investigation revealed that the loss stemmed from an error when the handler of Ulbricht’s wallets set up a liquidity pool on the Raydium decentralized exchange (DEX) at an incorrect price. In decentralized exchanges like Raydium, liquidity providers deposit tokens into a pool to facilitate trading, earning fees in return. However, in this case, the handler made a costly misstep by setting the pool price too low, making the tokens far cheaper than their actual value. A Maximal Extractable Value (MEV) bot quickly took advantage of the situation, purchasing the undervalued tokens and reselling them for a profit.
What began as a $1.5 million loss quickly snowballed after the same mistake was made again. The result was an additional $10.5 million in losses, compounding the damage and amplifying the financial fallout for Ulbricht’s wallets.
The price drop in ROSS has been severe, with the token's market value plummeting by 90%. Despite the losses, Ulbricht’s wallets still hold a significant portion of ROSS—at least 10% of the total supply—highlighting the substantial role his holdings continue to play in the token’s ecosystem.
Ulbricht, whose name became synonymous with the Silk Road, an online black market that revolutionized the use of Bitcoin for illicit trade, has remained a controversial figure within the cryptocurrency community. Arrested in 2013 and sentenced to a double life sentence plus 40 years for his role in running the marketplace, Ulbricht’s case sparked strong campaigns for his release. These efforts gained considerable support, including from within the crypto space, leading to Ulbricht’s pardon by President Donald Trump on January 22.
Interestingly, the launch of ROSS, the memecoin tied to Ulbricht’s name, coincided with his release, creating a new chapter in the ongoing story of one of the most infamous figures in cryptocurrency history. However, the recent trading blunders highlight the unpredictable and volatile nature of the crypto market, leaving questions about the future of both ROSS and Ulbricht’s financial holdings.
