Solana Wallets are Facing an Ongoing Exploit, Millions Stolen

Quick Summary

  • Ethereum layer 1 competitor Solana is under attack as thousands of Solana wallets are getting exploited. The hackers’ wallets are still active and draining more and more funds from Slope finance and Phantom wallets to steal Solana USDC coins.

An ongoing widespread attack is infecting 20 wallets per minute to steal the users’ funds. The hackers are attacking those wallets that have been inactive in the last 6 months to steal $SOL and $USDC coins. So far, more than 8000 wallets have been compromised stealing over $7 million.

Related: Scammers Are Getting Greedy And Clone Web3 Wallets To Defraud People

What is going on?

Still, the root cause of the attack is unknown, but the Twitter users are giving the following reasons for this exploit.

  • According to Foober, the attack was caused due to Solana network dependencies and a supply chain attack.
  • Watcher Guru states the reason that Solana is under a DDoS attack, and due to the overwhelming traffic, Solana RPC nodes are offline.
  • Kiyomi claims that there are only two ways to sign the transactions on users’ behalf; Auto approval or leaked seed phrase. Since system transfers are happening, that roots out the first possibility. It looks like the seed phrases were leaked.

Solana has an incredible community as the impact of the FUD is not causing much damage to the coin. People are not selling their holdings.

Solana is just 7% down since the news broke about the exploit. The coin remains immune to the news however it can tank a bit more as the pressure mounts.

How to save yourself?

Mainly two wallets Phantoms and Slope finance are being targeted to steal Solana and USDC coins. So if your funds are in one of these two wallets, you should probably transfer those to another wallet immediately. Also consider swapping these tokens for Ethereum, Bitcoin, or any other stablecoin.

Cold wallets are the best storages to keep your funds however in a situation like this, sending funds to crypto exchanges can be a safer option too.

We are still unaware of the root cause and perhaps it could be the connected dApps to your wallet authorizing these transactions. Here is how you can remove the authorization of all web apps.

Conclusion

These exploits hit the credibility of not only a coin or a single ecosystem but it raises a question on the overall crypto sphere. This is not the first time Solana has been exploited, it has a history. Since Solana is a layer 1 chain that preferred speed over security, such incidents are possible in the future again.

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author: mansha

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.