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{"actor":"system:backfill","investigation_id":"2f446d9c-abff-4973-a377-f4ab2a602098","kind":"publish","page_slug":"luna-yield","published_at":"2026-05-31T19:43:04.535Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Luna Yield","sections":[{"content":"Luna Yield marketed itself as a cross-chain yield aggregator and decentralized exchange built on the Solana blockchain, offering automated yield farming optimization with advertised annual percentage yields (APYs) of up to 400% on select liquidity pools such as the SOL-USDC pair. The project's native token was $LUNY. Luna Yield conducted its IDO on SolPad (also styled SolPAD), a Solana-based launchpad that required projects to submit qualifying documents before raising capital. Luna Yield was SolPad's second IDO project. The project raised approximately $100,000 in LUNY token sales through the IDO. Luna Yield is not related to Terraform Labs or its Terra LUNA token, a separate and distinct blockchain project.","heading":"Overview","severity":"low","sources":[{"credibility":1,"name":"CoinDesk: Solana's Luna Yield Goes Dark With Some Fearing a 'Rug Pull' Involving $6.7M","type":"news_article","url":"https://www.coindesk.com/markets/2021/08/20/solanas-luna-yield-goes-dark-with-some-fearing-a-rug-pull-involving-67m"},{"credibility":2,"name":"Crypto Briefing: Luna Yield Executes First Major Rug Pull on Solana","type":"news_article","url":"https://cryptobriefing.com/luna-yield-executes-first-major-rug-pull-on-solana/"}]},{"content":"On or around August 19, 2021, approximately two to three days after the Luna Yield IDO launched on SolPad, the project's development team allegedly executed a rug pull by withdrawing all liquidity from protocol pools, rendering user funds inaccessible. Users attempting to unstake their assets found themselves unable to do so. Contemporaneously, the Luna Yield website, Twitter account, Telegram channel, and all other social media were deleted.\n\nAn anonymous source cited by CoinDesk confirmed that on-chain data from the SOLscan block explorer showed approximately $6,709,834 in assets had been removed from the protocol. The breakdown of alleged stolen assets comprised: USDT ($1,686,679), ETH ($1,483,732), USDC ($1,166,959), SOL ($923,239), YFI ($490,834), RAY ($463,100), SOL-USDC LP tokens ($382,648), LUNY ($89,504), and LUNY-USDC LP tokens ($22,139). Some independent on-chain analysts estimated total losses at closer to $8–10 million when accounting for all affected pools, though the most widely cited verified figure from CoinDesk's anonymous source was $6.7 million.\n\nAccording to CoinDesk, the anonymous source stated the funds were moved from Solana to Ethereum and then routed through the Tornado Cash mixing service to obscure their trail. The Decrypt report separately noted that transactions from the Luna Yield contract deployer address transferred WBTC, WETH, LUNY, and USDT into a Tornado Cash wallet. Developer hoakegani, building on Solana, published an on-chain analysis on Twitter identifying the signing address ivBMuQdExFYSQraWteitugJ5AixJF9AeVwgdCjQhGwM as the address that funded the mint authorization for the LUNY token and that was associated with the fund movements. Hoakegani's analysis also identified address FBUKfg as a Sollet bridge address, suggesting an attempt to transfer assets toward Binance. The referenced deployer/project wallet is EiySftqENviEh339R1UhXN2Yxg9wi4ZpVHiRd99SXap7.","heading":"Alleged Rug Pull and Fund Theft","severity":"critical","sources":[{"credibility":1,"name":"CoinDesk: Solana's Luna Yield Goes Dark With Some Fearing a 'Rug Pull' Involving $6.7M","type":"news_article","url":"https://www.coindesk.com/markets/2021/08/20/solanas-luna-yield-goes-dark-with-some-fearing-a-rug-pull-involving-67m"},{"credibility":2,"name":"Decrypt: Solana DeFi Protocol Luna Yield Goes Dark With $6.7 Million in Crypto","type":"news_article","url":"https://decrypt.co/79098/solana-defi-protocol-luna-yield-goes-dark-with-6-7-million-in-crypto"},{"credibility":2,"name":"Bitcoin.com News: Solana-Based DeFi Protocol Luna Yield Reportedly Rug Pulls Investors, $6.7 Million Taken","type":"news_article","url":"https://news.bitcoin.com/solana-based-defi-protocol-luna-yield-reportedly-rug-pulls-investors-6-7-million-taken/"},{"credibility":2,"name":"CryptoPotato: Luna Yield, A Solana Yield Aggregator, Rug-pulls and Steals Almost $10 Million","type":"news_article","url":"https://cryptopotato.com/luna-yield-a-solana-yield-aggregator-rug-pulls-and-steals-almost-10-million/"}]},{"content":"Luna Yield was launched as the second IDO on SolPad, a Solana-based launchpad that reviewed project documentation before permitting fundraising. SolPad's association with Luna Yield drew scrutiny following the alleged rug pull, as the platform's endorsement had lent the project a degree of perceived legitimacy.\n\nFollowing the incident, SolPad issued a public statement acknowledging that Luna Yield had taken down its website and all social media, and that SolPad had been unable to contact the Luna Yield team. SolPad stated it had contacted a third party to investigate and was collecting evidence to provide to exchanges for potential fund suspension. SolPad emphasized it had 'no relation to the Luna Yield team' beyond serving as its launchpad and disclaimed responsibility for the alleged theft.\n\nDespite this disclaimer, SolPad announced a compensation plan for IDO participants, offering reimbursement of 60% of participants' original IDO purchase amount in USDC stablecoin, funded from SolPad's Foundation emergency reserves. For example, a participant who invested 400 USDC during the IDO round would receive 240 USDC. SolPad stated that distribution would be made directly to IDO participant wallets, expected to complete within days of announcement. The compensation covered only IDO investors and did not extend to liquidity providers who deposited funds into Luna Yield's yield farming pools after the IDO.","heading":"SolPad Launchpad Connection and Compensation Response","severity":"high","sources":[{"credibility":2,"name":"Decrypt: Solana DeFi Protocol Luna Yield Goes Dark With $6.7 Million in Crypto","type":"news_article","url":"https://decrypt.co/79098/solana-defi-protocol-luna-yield-goes-dark-with-6-7-million-in-crypto"},{"credibility":1,"name":"CoinDesk: Solana's Luna Yield Goes Dark With Some Fearing a 'Rug Pull' Involving $6.7M","type":"news_article","url":"https://www.coindesk.com/markets/2021/08/20/solanas-luna-yield-goes-dark-with-some-fearing-a-rug-pull-involving-67m"},{"credibility":2,"name":"Bitcoin.com News: Solana-Based DeFi Protocol Luna Yield Reportedly Rug Pulls Investors, $6.7 Million Taken","type":"news_article","url":"https://news.bitcoin.com/solana-based-defi-protocol-luna-yield-reportedly-rug-pulls-investors-6-7-million-taken/"},{"credibility":2,"name":"CoinGeek: Solana sees first rug pull: Luna Yield disappears with $6.7M in digital currency","type":"news_article","url":"https://coingeek.com/solana-sees-first-rug-pull-luna-yield-disappears-with-6-7m-in-digital-currency/"}]},{"content":"The Luna Yield development team operated anonymously and no real-world identities were disclosed prior to or following the alleged rug pull. After the incident, SolPad stated it could not trace the Luna Yield team's IP addresses or identities. On-chain analysis by developer hoakegani traced key wallet addresses associated with the fund movements, including the signing address ivBMuQdExFYSQraWteitugJ5AixJF9AeVwgdCjQhGwM and the project deployer address EiySftqENviEh339R1UhXN2Yxg9wi4ZpVHiRd99SXap7, but these did not lead to confirmed real-world identities.\n\nAs of the available public record, no individuals have been publicly named, charged, or prosecuted in connection with the Luna Yield incident. No SEC, CFTC, DOJ, or other regulatory enforcement action related specifically to Luna Yield has been identified in available sources. The alleged perpetrators remain unidentified. An anonymous team is itself a recognized risk factor in decentralized finance projects.","heading":"Anonymous Team and Identity Disclosure","severity":"critical","sources":[{"credibility":2,"name":"Crypto Briefing: Luna Yield Executes First Major Rug Pull on Solana","type":"news_article","url":"https://cryptobriefing.com/luna-yield-executes-first-major-rug-pull-on-solana/"},{"credibility":2,"name":"CryptoPotato: Luna Yield, A Solana Yield Aggregator, Rug-pulls and Steals Almost $10 Million","type":"news_article","url":"https://cryptopotato.com/luna-yield-a-solana-yield-aggregator-rug-pulls-and-steals-almost-10-million/"}]},{"content":"The Luna Yield incident is frequently cited as the first major rug pull on the Solana blockchain. At the time, Solana was experiencing rapid growth in its DeFi ecosystem, and the incident drew attention to launchpad due-diligence practices. The FXStreet report characterized it as the 'biggest ever rug pull in [the] Solana ecosystem' based on estimates reaching $8–10 million, though the most thoroughly sourced figure from CoinDesk's on-chain verification was $6,709,834.\n\nNo court filings, regulatory orders, or law enforcement press releases related to Luna Yield have been identified. All primary claims rest on Tier 2 crypto news coverage (CoinDesk, Decrypt, Crypto Briefing, CryptoPotato, Bitcoin.com News) and an anonymous on-chain analysis shared via Twitter (Tier 3 for the Twitter thread itself). CoinDesk's itemized on-chain breakdown of $6,709,834 elevates confidence for the loss figure specifically. The compensation plan details are corroborated across multiple independent Tier 2 outlets. The Tornado Cash fund routing claim originates from an anonymous source cited by CoinDesk and is echoed in Decrypt's coverage; it lacks a publicly verified on-chain trace from a named analytics firm, and should be treated as alleged.","heading":"Broader Context and Sourcing Limitations","severity":"medium","sources":[{"credibility":2,"name":"FXStreet: Biggest ever rug pull in Solana ecosystem steals nearly $10 million","type":"news_article","url":"https://www.fxstreet.com/amp/cryptocurrencies/news/biggest-ever-rug-pull-in-solana-ecosystem-steals-nearly-10-million-202108201147"},{"credibility":1,"name":"CoinDesk: Solana's Luna Yield Goes Dark With Some Fearing a 'Rug Pull' Involving $6.7M","type":"news_article","url":"https://www.coindesk.com/markets/2021/08/20/solanas-luna-yield-goes-dark-with-some-fearing-a-rug-pull-involving-67m"}]}],"sources_used":[{"credibility":1,"name":"CoinDesk: Solana's Luna Yield Goes Dark With Some Fearing a 'Rug Pull' Involving $6.7M","type":"news_article","url":"https://www.coindesk.com/markets/2021/08/20/solanas-luna-yield-goes-dark-with-some-fearing-a-rug-pull-involving-67m"},{"credibility":2,"name":"Decrypt: Solana DeFi Protocol Luna Yield Goes Dark With $6.7 Million in Crypto","type":"news_article","url":"https://decrypt.co/79098/solana-defi-protocol-luna-yield-goes-dark-with-6-7-million-in-crypto"},{"credibility":2,"name":"Crypto Briefing: Luna Yield Executes First Major Rug Pull on Solana","type":"news_article","url":"https://cryptobriefing.com/luna-yield-executes-first-major-rug-pull-on-solana/"},{"credibility":2,"name":"CryptoPotato: Luna Yield, A Solana Yield Aggregator, Rug-pulls and Steals Almost $10 Million","type":"news_article","url":"https://cryptopotato.com/luna-yield-a-solana-yield-aggregator-rug-pulls-and-steals-almost-10-million/"},{"credibility":2,"name":"Bitcoin.com News: Solana-Based DeFi Protocol Luna Yield Reportedly Rug Pulls Investors, $6.7 Million Taken","type":"news_article","url":"https://news.bitcoin.com/solana-based-defi-protocol-luna-yield-reportedly-rug-pulls-investors-6-7-million-taken/"},{"credibility":2,"name":"CoinGeek: Solana sees first rug pull: Luna Yield disappears with $6.7M in digital currency","type":"news_article","url":"https://coingeek.com/solana-sees-first-rug-pull-luna-yield-disappears-with-6-7m-in-digital-currency/"},{"credibility":2,"name":"FXStreet: Biggest ever rug pull in Solana ecosystem steals nearly $10 million","type":"news_article","url":"https://www.fxstreet.com/amp/cryptocurrencies/news/biggest-ever-rug-pull-in-solana-ecosystem-steals-nearly-10-million-202108201147"},{"credibility":1,"name":"Nasdaq (syndicated CoinDesk): Solana's Luna Yield Goes Dark With Some Fearing a 'Rug Pull' Involving $6.7M","type":"news_article","url":"https://www.nasdaq.com/articles/solanas-luna-yield-goes-dark-with-some-fearing-a-rug-pull-involving-$6.7m-2021-08-19"}],"summary":"Luna Yield ($LUNY) was a purported cross-chain yield aggregator built on Solana that conducted an initial DEX offering (IDO) on the SolPad launchpad in August 2021. Approximately two days after its IDO, the anonymous development team removed all liquidity from protocol pools, deleted the project website and all social media accounts, and transferred an estimated $6.7 million in user funds across multiple cryptocurrencies to obfuscation services, in what multiple crypto news outlets characterized as a rug pull. The incident is widely cited as the first major rug pull on the Solana blockchain.","timeline":[{"date":"2021-08-16","event":"Luna Yield yield farm incubated by SolPad; IDO fundraising opens on SolPad launchpad, raising approximately $100,000 in LUNY token sales.","source":"Crypto Briefing","source_url":"https://cryptobriefing.com/luna-yield-executes-first-major-rug-pull-on-solana/"},{"date":"2021-08-17","event":"Luna Yield IDO goes live on SolPad; yield farming pools open to depositors.","source":"Decrypt","source_url":"https://decrypt.co/79098/solana-defi-protocol-luna-yield-goes-dark-with-6-7-million-in-crypto"},{"date":"2021-08-19","event":"Luna Yield team allegedly removes all liquidity from protocol pools, deletes website, Twitter, Telegram, and all other social media accounts. SolPad announces on Twitter that it cannot reach the Luna Yield team. On-chain analyst hoakegani publishes Twitter thread tracing fund movements via wallet ivBMuQdExFYSQraWteitugJ5AixJF9AeVwgdCjQhGwM and identifying Sollet bridge address FBUKfg.","source":"CoinDesk / CryptoPotato","source_url":"https://www.coindesk.com/markets/2021/08/20/solanas-luna-yield-goes-dark-with-some-fearing-a-rug-pull-involving-67m"},{"date":"2021-08-20","event":"CoinDesk publishes itemized on-chain breakdown confirming $6,709,834 in assets removed from Luna Yield. Anonymous source states funds were moved from Solana to Ethereum and routed through Tornado Cash. Nearly 200 affected investors organize in a 'Luna Yield RUG PULL' Telegram channel.","source":"CoinDesk","source_url":"https://www.coindesk.com/markets/2021/08/20/solanas-luna-yield-goes-dark-with-some-fearing-a-rug-pull-involving-67m"},{"date":"2021-08-21","event":"SolPad finalizes and announces compensation plan: IDO participants to receive 60% of their original purchase amount in USDC, funded from SolPad Foundation emergency reserves. Distribution to be made directly to IDO participant wallets.","source":"Decrypt / Bitcoin.com News","source_url":"https://decrypt.co/79098/solana-defi-protocol-luna-yield-goes-dark-with-6-7-million-in-crypto"}]},"v":1}