Solana Wallets Get Hacked, And The Company Loses Millions

Reputation of the upcoming Solana Saga at stake.

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solana wallet hacked
Image: Unsplash

The Solana ecosystem became a target of the recent cryptocurrency exploits. After Solana suffered a hack, users claimed their assets were taken from popular internet-connected “hot” wallets like Phantom, Slope, and TrustWallet without their knowledge.

According to Solana’s Twitter account, around 8,000 or more wallets on the Solana network had their money stolen by an unknown perpetrator. The company reportedly lost about $8 million. Even if such hacks are typical among blockchain platforms, the news is nevertheless important given Solana’s accolades as one of the quicker and most affordable ecosystems for digital trading assets,

Solana wallets hacked

Blockchain auditors OtterSec report that the attack is still active, and over 8,000 wallets are already hacked. Several Solana addresses have been connected to the attack, and those wallets amassed SOL, SPL, and other Solana-based tokens valued at at least $5 million from unwary users.

The Stablecoin USD Coin and other cryptocurrencies compatible with the Solana blockchain and Solana’s cryptocurrency (SOL) appear to have been stolen by hackers (USDC). Solana has faced security issues in the past, such as bot spam and DDoS attempts. The company is also accepting deposits for the Saga phone, which it claims will go on sale next year and include built-in support for the network’s decentralized apps.

Will the Solana Saga be secure?

The Solana Saga intends to simplify and secure mobile cryptocurrency trading. With its Seed Vault feature, the company aims to keep private keys, seed phrases, and other sensitive data secure on Android. However, this latest fiasco tarnishes the reputation of the upcoming device.

Phantom, Slope, and TrustWallet are other wallets affected by the hack. Initially, it was claimed that Solflare users were also impacted. However, the firm denies that this is true. Solana warned users to convert to hardware or “cold” wallets and advised treating empty wallets as compromised and abandoned.

The company’s Twitter account said that its engineers “are currently working with multiple security researchers and ecosystem teams to identify the root cause of the exploit, which is unknown at this time.” What are your thoughts on this comment down below?

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