Wallets connected to Ross Ulbricht, the creator of the Silk Road, have suffered a loss of approximately $12 million after a series of errors involving the sale of the ROSS meme coin at an unfavorable price. Despite this setback, the ROSS token has surged by over 700% in just 24 hours, making a remarkable recovery from the chaos.
The Mistake and Its Aftermath
According to Arkham’s data, the two wallets involved in the mishap are linked to FreeRoss.org, a platform created by Ulbricht’s family to help secure his release from prison. These wallets were allocated 50% of the total ROSS token supply from the developer behind pump.fun, the meme coin’s creator.
ROSS was launched following Ulbricht’s January 22, 2025 pardon by former President Donald Trump. The token gained attention due to its association with Ulbricht’s release, but the initial excitement was quickly overshadowed by a costly error during the coin’s early days.
The Liquidity Blunder
On January 30, the wallets holding half of the ROSS supply tried to provide liquidity for the token on Raydium, a decentralized exchange based on the Solana blockchain. Unfortunately, in doing so, they mistakenly sold 5% of the ROSS supply at a significantly lower price than its market value, effectively crashing the token’s price. This blunder resulted in a loss of about $1.5 million.
An MEV (maximal extractable value) bot, designed to scan markets for profitable opportunities, quickly swooped in to purchase the mispriced tokens. The bot then sold them back into the liquidity pool, profiting from the initial error.
A Second Mistake and Greater Losses
Undeterred by their earlier loss, the operators of the Ulbricht-linked wallets attempted to provide liquidity again, but this time with a single-sided liquidity pool. However, they made another crucial mistake: they selected a Constant-Product Market Maker (CPMM) pool instead of a Concentrated Liquidity Market Maker (CLMM) on Raydium. This new mistake triggered another disastrous sell-off.
As a result, around 35% of the total ROSS supply was once again dumped onto the market, which was quickly purchased by a different MEV bot. This time, the bot resold the tokens for over $600,000, and the price of ROSS plummeted by nearly 90%.
Despite these errors, the wallets still hold about 10% of the token supply, which is now valued at roughly $200,000. While the loss is significant, the ROSS token has managed to stabilize and even thrive in the wake of the tumult.
The Surge of ROSS Token
Following the massive sell-off, ROSS made a stunning recovery. The token surged by over 700% within just one day. As of now, it is trading at $0.0104, with a 24-hour trading volume of $14.8 million. The price increase highlights continued interest in the meme coin, despite the rocky start.
Final Thoughts
While the $12 million loss certainly dealt a blow to the wallets associated with Ross Ulbricht, the ROSS token has proven resilient, experiencing a dramatic price rebound. The series of errors and volatility demonstrate the risks involved in trading meme coins and navigating decentralized liquidity pools.
The events surrounding ROSS also underscore the unpredictable nature of the crypto market, where mistakes can result in significant financial losses—but also in equally surprising recoveries.
