Crypto sector hit by a security exploit draining over 8,000 Solana wallets

Crypto traders reported that their SOL cryptocurrency and USDC stablecoins had been stolen

August 03, 2022 04:02 pm | Updated 04:02 pm IST

Crypto sector hit by a security exploit draining over 8,000 Solana wallets

Crypto sector hit by a security exploit draining over 8,000 Solana wallets | Photo Credit: REUTERS

Cryptocurrency traders who invested in Solana, the ninth biggest blockchain by market cap, were alerted today to an alleged security exploit which saw thousands of wallets being drained of Solana’s native currency SOL, and the stablecoin USD Coin [USDC].

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As investors panicked and analysts tried to unravel what was going on, the CEO of Binance - one of the world’s largest crypto exchanges - confirmed that users’ funds had been taken.

“There is an active security incident on Solana. Many (7000+ and counting) wallets are drained of SOL & USDC. Don’t know root cause yet. Maybe permissions granted to apps. For remediation, send the funds to a cold wallet or CEX like @Binance,” tweeted Mr. Changpeng Zhao today.

In particular, traders who were using the Phantom and Slope digital wallets reported that their funds were drained. Both wallet companies issued a statement confirming they were investigating the situation.

Solana co-founder Anatoly Yakovenko did not issue a statement but was interacting with Twitter users to understand the situation. Meanwhile, co-founder Raj Gokal did not directly address the incident but retweeted status updates posted by others in the Solana ecosystem. Solana’s official Twitter account was yet to acknowledge the incident or its severity.

At the time of writing, over 8,000 wallets had been affected by the exploit.

While it is too early to confirm the cause of the attack, the addresses associated with the hacker(s), or the exact amount lost, estimates suggest that the stolen funds could amount to millions of dollars.

The value of SOL fell by 2.75% in the last day.

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