Crypto: 8,000 investors lost everything in huge hack

Crypto: 8,000 investors lost everything in huge hack

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Solana, the ninth most valuable cryptocurrency in the market, has been the victim of a hack. By exploiting a mysterious flaw, hackers managed to siphon off nearly 8,000 digital wallets in a few hours. Over $6 million was stolen.

On the night of August 2 to 3, 2022, the Solana network was the victim of a major computer attack. Close to 8,000 digital walletsincluding wallets Phantom or Slope, were completely siphoned off. The mobile app and extension of both wallets are affected. Apparently, the affected wallets had been inactive for several months.

All funds have been transferred to addresses held by hackers. Four addresses have been identified by blockchain analysts. It is still unknown who the hackers behind the attack are.

Engineers from multiple ecosystems, with the help of multiple security companies, are investigating emptied wallets on Solana “, assures the official Twitter account of Solana.

A mysterious security breach

During the operation, the pirates seized more than 6 million dollars » in Solana and USDC, a widely used stablecoin. According to the network team, a flaw allowed a malicious actor to drain funds from a number of wallets”.

The origin of the breach is not yet known, but engineers are currently investigating it. At this stage, there are still many gray areas. For Anatoly Yakovenko, co-founder of Solana, it could be an attack on the supply chain of the iOS operating system. This observation must still be confirmed, specifies the person in charge.

“Empty Wallets Should Be Treated As Compromised And Abandoned”advises the Solana team.

Fortunately, users who have invested in a hardware wallet are not affected by the attack. As a reminder, a hardware wallet is a cold storage solution that takes the form of a USB key. Without this physical key, it is impossible to access your cryptocurrencies. It is generally considered the most secure way to store digital assets. Among the most reputable brands in the wallet sector is the French start-up Ledger.

If you hold cryptocurrencies on a Phantom or Slope wallet, we advise you to transfer all on a cold storage solution. If you don’t have a hardware wallet handy, send your funds to an exchange, such as Binance, FTX, Coinbase, or Crypto.com. Your assets will be safe until Solana engineers discover the source of the flaw.

According to OtterSec, a company specializing in blockchain analysis, it is possible that the hackers have seize the private key of the users. This is why Solana recommends that injured users change their recovery phrase if they opt for a hardware wallet.

Also read: How Youtuber Crypto Gouv stole 4 million euros by scamming his subscribers

The ninth cryptocurrency on the market

Currently, Solana is the ninth most valuable cryptocurrency in the ecosystem, behind Ripple’s XRP and Cardano. Developed by the Californian start-up Solana Labs, it presents itself as an alternative to the Ethereum network by promising faster transactions and lower fees. According to the founders of Solana, the network is capable of handling 60,000 transactions per second.

Since its official launch, Solana has established itself as one of the most active projects in the sector. Determined to facilitate access to decentralized finance, Solana has benefited enormously from the rise of non-fungible tokens (NFTs). The network has also been added to essential marketplaces, such as OpenSea. Magic Eden, a platform for selling digital works, even relies exclusively on the Solana network.

Recently, Solana Labs even entered the smartphone market. With the support ofOsom, the brand born from the ashes of Essential, the firm designed the Saga, the 1st Android smartphone that integrates services from the Solana ecosystem. To accompany the arrival of the telephone, the start-up even opened a physical store in New York.

Repeated failures

Unfortunately, Solana’s growing popularity has taken a beating in recent months. In 2022, repeated outages have regularly paralyzed the network, preventing any transaction. In May, the network collapsed in the face of too many transfers.

At the beginning of June, the network again found itself out of service for several hours following a bug in the system. The Solana Labs teams have been forced to restart the network urgently, eroding user trust. It was already the 8th outage of the year. Since these events, Solana’s credibility has withered.

© CoinGecko

The massive hacking of which the network has been the victim is not likely to help matters. Unsurprisingly, the announcement of the hack also weighed on the course of the cryptocurrency. The Solana is currently trading around $39, down 1.9% in 24 hours.

It’s about second hack of the week in the world of cryptocurrencies. On the night of August 1 to 2, 2022, Nomad, a bridge that connects blockchains, was the victim of an attack. By exploiting a loophole in the protocol, hackers got away with $190 million in digital currency.


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