8,000 Solana crypto wallets drained of $6 million after hacking attack

8,000 Solana crypto wallets drained of $6 million after hacking attack

Blockchain platform, Solana, has reportedly been hit by a serious cyberattack, where the attackers drained almost $6 million from thousands of wallets that were linked with its crypto network.

Reliable reports cite that a malicious actor took out funds from approximately 8,000 wallets linked to Solana, with the platform’s backer, the Solana Foundation, confirming the attack through an official statement.

The Solana wallets work similarly to physical wallets, but instead of cash, users store their cryptocurrency in it and are given a set of private keys that grant them unique ownership of their assets.

The foundation, through its official Twitter account ‘Solana Status’, stated that its engineers are working on identifying the root cause behind the breach by working alongside a number of ecosystem teams and security researchers.

Blockchain consultancy Elliptic, which helps customers address crypto-related crimes, stated that the attack started on Tuesday, 2nd of August, and that so far more than $5.8 million have been taken out of the affected wallets. Among the stolen assets include NFTs (non-fungible tokens) as well as the Solana cryptocurrency SOL. 

The consultancy further specified that Solana blockchain users have become the latest target of hack in the crypto sector, with $5.8 million in funds stolen from 7,947 wallets, including assets such as SOL, NFTs, as well as more than 300 Solana-based tokens.

Elliptic further stated that the issue seems to have come from the software utilized by the affected wallets, instead of the blockchain itself.

For the uninitiated, Blockchain is a digital register that logs transactions and is the foundation for crypto assets.

The consultancy added that although the main cause is not yet known, it seems to have been caused due to a fault in certain wallet software. It also specified that a single hacker seems to be behind the whole attack.

The hacking has only affected wallets that were always connected to the Internet and has also been reported in other Solana-based wallets, such as USDC, TrustWallet, Phantom, and Slope.

As Solana investigates the root cause, it has tweeted that that addresses that were compromised were directly or indirectly related to Slope, a crypto wallet service provider.

Source credit: https://www.theguardian.com/technology/2022/aug/03/hacking-attack-drains-5m-from-8000-wallets-linked-to-solana-crypto-network