Solana Hot Wallets Suffer Ongoing Attack, Roughly $5M Stolen Thus Far

News BTC

We’re on the heels of cross-chain bridge Nomad suffering a demolishing hack earlier in the week, and now hackers are doubling down with an attack on Solana hot wallets mid-way through the week. On Tuesday afternoon, reports emerged of some sort of vulnerability that was taking advantage of Solana-based wallets. Approaching 24 hours later, there are still quite a bit of unknowns, and we’re approaching nearly $5M of hacked funds.

Let’s take a look at what we do know so far.

A Solana Scare

Nearly 10,000 wallets across mobile users utilizing both Slope and Phantom (two of the leading Solana wallets) fell victim to this week’s hack in what is seemingly a result of poor user privacy management. While reputable users in crypto Twitter are still working on a post-mortem, a Dune Analytics dashboard created by @tristan0x shows a visual of how quickly things developed; while activity on Wednesday has been at a standstill, there is still cloudy forecasts around whether or not this vulnerability is still active.

How To Get Free Crypto  
5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

General crypto Twitter consensus thus far has pointed towards Slope as being the domino to fall here; the platform’s latest correspondence on Twitter, from Tuesday, states that they are “actively working to sort out the issue as rapidly as possible and rectify best we can.” On Wednesday, Slope released a message to users that was reposted by reputable crypto Twitter user foobar:

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

Get 110 USDT Futures Bonus for FREE!
Despite abundant question marks around Solana security, the price of the SOL token has remained surprisingly strong. | Source: SOL-USD on TradingView.com

Related Reading | Why The Crypto Fear & Greed Index Points To Sustainable Recovery

Crypto Vulnerabilities Run Rampant

So how did it all happen? Post-mortems from independent sleuths and other reputable sources in the space have yet to be released, but speculation has largely landed on some variation of a ‘software supply chain attack’ being the likely downfall here. This is where attackers search far and wide for security vulnerabilities across network protocols, server infrastructure, and platform coding practices to take advantage of potential holes.

Read our comparison of 50 different crypto casinos. Find out who has most generous bonuses, best UX, knowledgeable customer support and best provably fair games.

In this case, the root issue seems to lie within Slope and some have even speculated that it could be a malicious insider at Slope taking advantage of the platform’s practices. As foobar notes in the Twitter thread above, “compromised Phantom wallets came from seed phrase imports used in Slope.”

Coinbase Banner  

If you or someone you know is concerned about the safety of their funds on a Solana-based wallet, move funds to a hardware wallet where the seed phrase key has not been typed or inputted digitally on any device. Until a post-mortem from Slope and other reputable resources in the community emerges, there will be a variety of assumptions around these circumstances – so stay tuned and stay secure.

Related Reading | TA: AVAX Struggles To Hold Above Resistance As It Eyes $40

Featured image from Pexels, Charts from TradingView.com
The writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.

Go to Source
Author: Taylor Scott


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.