Solana ecosystem hit by hack that drains millions in crypto from 8,000 hot wallets

Hackers have targeted the Solana ecosystem, draining crypto funds from thousands of “hot” wallets connected to the internet. Such attacks are common among blockchain platforms, but the news is still significant given the praise Solana has attracted as one of the faster and cheaper ecosystems for trading digital assets.

It appears that hackers have been able to steal both Solana’s own cryptocurrency (SOL) and some that are compatible with the Solana blockchain, such as the stablecoin USD Coin (USDC). As the attack is ongoing, the value of the stolen assets is not clear, but reports from independent analysts and security firms such as PeckShield estimate the losses to be worth as much as $8 million.

Solana has struggled with security incidents in the past, including bot spam and reported DDOS attacks. Meanwhile, it is also taking deposits for the Saga phone which it says will launch next year with support for the network’s decentralized apps built in.

Solana’s official Twitter account says now that approximately 8,000 (up from 7,767 previously) wallets appear to have been affected by the attack, including those operated by third parties Phantom and Slope. The company did not explain the cause of the attack, but noted that there was no evidence that hardware wallets (those not connected to the internet) had been affected.

In a tweet, the company’s status update says: “This does not appear to be a bug with Solana core code, but in software used by several software wallets popular with users of the network.”

However, on Twitter, Solana’s co-founder Anatoly Yakovenko went into a bit more detail, hinting at the hack seemed like a supply chain attack targeting both iOS and Android applications (meaning the attackers exploited some weaknesses in connected apps or browser extensions). As Decrypt reports, the transactions are signed with the users’ private keys, suggesting that the attackers have somehow compromised the seed phrase used to secure their wallet.

Update 2 August at 9:35 a.m. ET: Added latest updates from Solana.

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