Solana is not experiencing the best period as several hackers have attacked it amid the ongoing bear market. The attack’s aftermath has led to the loss of millions of dollars after over 8,000 Solana wallets were compromised.
So far, the private keys to many SOL wallets have been compromised as users claim that their wallet funds have been stolen. As a result, over $7 million worth of SOL, SPL, and other tokens have gotten missing.
How Solana Fell to Hackers
The hacker’s plan to break into the private keys and steal native tokens(SOL) and SPL tokens(USDC) from hot wallets was largely successful. However, most targeted wallets have been inactive for more than six months, and the likes of Phantom and Slope wallet holders have suffered. While the direct cause of the exploit is still unknown, according to Twitter user foobar, it might have been an upstream dependency supply chain attack.
He also mentioned that revoking approvals for these transfers might not help in safekeeping, as the only viable option is to move funds to an offline cold hardware wallet. However, if a hardware wallet is not an available option, temporarily moving to a reliable centralised exchange is another solution.
The Cause Remains Unknown
A few members of the SOL community were trying to find the root cause of the hack, and a few members reached out to Phantom, a crypto wallet provider. Concerning the news, Phantom responded:
“We are working closely with other teams to get to the bottom of a reported vulnerability in the Solana ecosystem. Currently, the team does not believe this is a Phantom-specific issue. However, we will issue an update once we gather more information.”
Additionally, other members speculated that the attack could be linked to Magic Eden’s Solana-based non-fungible token NFT marketplace. However, it is also important to note that the vulnerability might not be limited to the blockchain.
SOL has also faced a bit of pressure, with the token dropping by 9% over the past few hours. It is currently recovering in the chart, but further losses may mount more pressure on the asset as the SOL ecosystem continues to navigate a stressful situation.