The post Ross Ulbricht’s Wallets Lose $12M in Trading Blunder—Here’s What Happened appeared first on Coinpedia Fintech News
Some cryptocurrency wallets, connected to Ross Ulbricht, infamous for his association with the Silk Road black market, have suffered a massive loss of $12 million because of a trading mistake while handling ROSS, a fan-made memecoin. The report was initially revealed by Arkham Intelligence, a renowned blockchain analytics organisation. In the last seven days, the price of ROSS has experienced a decline of 48.35%. Here is what has happened so far.
How Ulbricht’s Wallets Lost $12 Million?
According to Arkham Intelligence, the loss happened when the handler of Ulbrcht’s wallets mistakenly set up a liquidity pool on the Raydium exchange at the wrong price.
When you provide liquidity on a DEX like Raydium, you deposit tokens into a pool so that other traders can buy and sell them. In return, you earn fees from trading activity.
In this case, the handler set up the pool at the wrong price, which made the tokens much cheaper than they should have been. A Maximal Extractable Value bot quickly noticed the mistake, brough the cheap tokens and sold them for a profit.
Repeated Error Led to Bigger Losses
Initially, the wallets lost around $1.5 million due to the aforementioned trading mistake. Surprisingly, the handler repeated the same mistake once again, causing the wallets to lose an additional $10.5 million.
Current Status of Ross and Ulbricht’s Wallets
The analysis points out that the ROSS market has faced a severe drop of 90% due to the abnormal developments connected to Ulbricht’s wallets. Interestingly, data shows that Ulbricht’s wallets still hold at least 10% of the total supply of ROSS.
Ross Ulbricht’s Recent Pardon and Background
Ulbricht is one of the most controversial personalities in the cryptocurrency sector. His name first hit headlines when he was booked for running an online black market, called Silk Road. This black market gained the attention of the crypto community, as it used Bitcoin for its payments. In 2015, he was sentenced to a double life sentence plus 40 years.
The family of Ulbricht launched several strong campaigns, demanding his release. Some of these campaigns, like FreeRoss.org, received immense support from the crypto community, even in the form of hefty donations. He was pardoned by US President Donald Trump 
Donald Trump
Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election
President
on January 22. Notably, the launch of ROSS coincided with the release of Ulbricht.
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