Over $7M stolen from ongoing Solana-based crypto wallet hack

Crypto analysts explain that the hacker is stealing both SOL and Solana Program Library (SPL) tokens.

Wednesday August 03, 2022 , 2 min Read

An active security incident on Solana has led to the loss of funds worth millions across a number of Solana-based wallets.

Non-custodial Solana wallets, including Phantom and Slope, have become the latest victims, with users reporting that their funds have been drained without their knowledge.

Phantom took to Twitter to announce that the firm is working closely with other teams to understand the issue.

We are working closely with other teams to get to the bottom of a reported vulnerability in the Solana ecosystem. At this time, the team does not believe this is a Phantom-specific issue.

As soon as we gather more information, we will issue an update.
— Phantom (@phantom) August 3, 2022

Non-custodial wallet Slope also assured that it would rectify the issue as soon as possible and would update users about the breach.

To all those currently affected by the breach on Solana, please know we are actively working to sort out the issue as rapidly as possible and rectify best we can.

We will be in touch as soon as we have answers.
— Slope (@slope_finance) August 3, 2022

Crypto analysts explain that the attacker is stealing both SOL and Solana Program Library (SPL) tokens. Several industry heavyweights have taken to Twitter to announce the issue.

Changpeng Zhao, CEO of crypto exchange Binance, took to Twitter and wrote about the security incident on the Solana chain.

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. https://t.co/nQrBXAgCbf
— CZ 🔶 Binance (@cz_binance) August 3, 2022

Emin Gun Sirer, Founder and CEO at Ava Labs, commented that there is a lot of speculation and misinformation about the issue. He stated that hardware wallets and centralised exchanges seem unaffected, and users holding Solana assets on those systems would be fine.

There's an ongoing attack targeting the Solana ecosystem right now. 7000+ wallets affected, and rising at 20/min. Because it's very early and the attack is ongoing, there's a lot of misinformation and speculation. So here are a few thoughts and clarifications.
— Emin Gün Sirer🔺 (@el33th4xor) August 3, 2022

Kiyomi NFT-based gaming wallet also speculated that over $7 million were stolen from Solana-based crypto wallets.

1/ 🧵Here’s what you should know regarding The Great Drain: #Solana Wallet Exploit:
— Kiyomi (104) (@kiyomiwallet) August 3, 2022

There have been multiple reports suggesting many wallets have been affected. Solana's price has been down 7%.

Edited by Teja Lele

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