FlashTrade halts trading after unauthorized $98,000 withdrawal

The Solana-based perpetual protocol has resumed trading, but deposits and withdrawals remain paused for about 24 hours as the team reconciles funds and awaits a security patch from MagicBlock.

SOL

Summary

FlashTrade, a Solana ecosystem perpetual protocol, temporarily suspended trading, deposits, and withdrawals after an unauthorized $98,000 withdrawal. Trading has since resumed, while deposits and withdrawals are expected to remain paused for about 24 hours as the team reconciles funds. FlashTrade said the $98,000 loss will be fully covered and that user funds are unaffected. The incident reflects a common containment approach in crypto security events, where platforms restrict activity while assessing exposure and implementing fixes. A patch from MagicBlock is expected within 12 to 24 hours to address the issue.

Terms & Concepts
  • perpetual protocol: A trading platform for perpetual derivatives, which are contracts without an expiry date
  • fund reconciliation: The process of checking balances and transactions to ensure records and assets match
  • security patch: A software fix released to address a vulnerability or other security issue