Crypto hack: Solana wallets drained of millions by hackers
Aug 03, 2022, 04:00 pm
3 min read
Solana, an increasingly popular blockchain, has become the latest victim of a cryptocurrency hack.
Over $8 million has been siphoned out of over 8,000 Solana-based ‘hot’ wallets, including Phantom, Slope, and TrustWallet by unknown attackers.
The cause of the attack is unclear as of now, but several industry sources have attributed this to a “supply chain issue.”
Why does this story matter?
- The attack on the Solana ecosystem comes a day after Nomad Bridge was hacked. In the latter, the hacker wiped out $191 million.
- Two hacks in a row will certainly affect the trust of users on blockchains. On top of that, this is a big blow to Solana which has been climbing up the crypto chain steadily.
Solana became the latest victim of crypto hack
Engineers from multiple ecosystems, with the help of several security firms, are investigating drained wallets on Solana. There is no evidence hardware wallets are impacted.
This thread will be updated as new information becomes available.
— Solana Status (@SolanaStatus) August 3, 2022
Over 8,000 wallets have fallen victim to the attack
The attack on Solana ecosystem was first reported earlier today. As per Twitter account @WatcherGuru, over 8,000 wallets have been compromised.
The hack has only affected ‘hot’ wallets (wallets always connected to the internet). According to Twitter user @Oxfoobar, the attacker targeted both native (SOL) and SPL (USDC) tokens.
Accounts that have been inactive for over six months seem to be the primary target.
Several ‘hot’ wallets have been affected by the attack
The attack on Solana has drained over $8 million from wallets so far. Hot wallets, including Phantom and Slope are among those affected by the attack.
Wallet provider Phantom tweeted that it is working with other teams to get to the bottom of the issue. It said, “At this time, the team does not believe this is a Phantom-specific issue.”
Cause of the hack remains unknown
🚨More than 8,000 wallets in the @solana ecosystem have been hacked over $6 million worth of crypto has been compromised.
— Crypto India 🔑 (@CryptooIndia) August 3, 2022
The hacker likely exploited a supply chain issue
It is unclear what caused the attack that affected the ecosystem. According to blockchain investigator @PeckShieldAlert, the hacker exploited a “supply chain issue” to steal user private keys behind affected wallets.
Emin Gün Sirer, the founder of Avalanche, also suggested the possibility of a supply chain issue causing the attack. He said that the hacker might have “acquired access to private keys.”
The primary wallet used for the attack was dormant until today
According to popular scam detective @ZachXBT, the hackers funded the primary wallet used for the attack using Binance seven months ago. The account remained dormant until today and became active only 10 minutes before the attack started.
Hardware wallets and CEXs have not been affected
The attack has not affected hardware wallets or centralized exchanges (CEXs). Solana has advised users to switch to hardware wallets.
It has also asked users to consider drained wallets as compromised and abandoned.
The news of the attack caused an 8% decline in Solana’s value. However, it has bounced back since then and is trading at $39.18 after a 1.1% increase in one hour.