Solana Hacked! Millions of Dollars of User Funds Lost Stolen
Recently, news emerged that Solana was hacked, to be exact Tuesday, August 2, 2022, at 20:00, various reports came in from investors of Solana’s $SOL blockchain coin. A number of investors claimed that the funds in Solana’s wallet, namely Phantom, Slope, and Trust Wallet, had disappeared.
There are four wallet addresses associated with the loss of assets on the Solana blockchain. The four wallet addresses tracked drained 8,000 wallets totaling $580 million in $SOL coins, $SPL tokens, and other tokens.
A Twitter social media user with the username @nftpeasant searches on Solscan, a website to track transactions on the Solana blockchain. He said that $6 crypto assets were transferred from all of Phantom’s wallets within ten minutes. A user has reported USDC assets of $500,000 missing from his wallet.
Later, a user with the username @PeckShieldAlert on Twitter also revealed that the total hacked funds reached $8 million with the addition of one non-liquidity coin worth $570 million that could not be sold.
This attack had an impact on the price of $SOL which fell by 6%. Although the cause of the attack on the Solana blockchain wallet is not yet known, the decline in the value of the asset is judged to be due to the not-so-high hacking volume in crypto hacking schemes.
What is the response from the parties involved?
Magic Eden, a leading NFT marketplace on the Solana blockchain that has received these reports immediately realized that this suspicious transaction was an attack on Solana. Magic Eden thinks that the attack activity on Solana is directly proportional to the increasing use of the blockchain.
A search by related parties found that the transaction from this hacking activity was valid because the wallet user was recorded to have confirmed the transaction through a link. Magic Eden then urges users to refuse permission to access unknown links as a preventive measure to prevent suspicious transactions from repeating.
Through the official social media Twitter, Solana clarified that his party was working with various engineers from various ecosystems and security companies to investigate the attack. Another discovery also said that attack activity was not found on Solana’s hardware wallet at all.
Meanwhile, Phantom, a wallet under the Solana blockchain, tweeted,
“1/ Phantom has reason to believe that the reported exploits are due to complications related to importing accounts to and from @slope_finance. We are still actively working to identify whether there may have been other vulnerabilities that contributed to this incident.”
“1/ Phantom has reason to believe that the reported exploit was caused by complications related to importing accounts to and from @slope_finance. We are still actively working to identify if there may be other vulnerabilities that contributed to this incident.”
From the tweet, Phantom denied that they were the cause of the attack on $SOL and other tokens such as $USDC. The tweet also explained that he was working with Slope and was actively working to resolve this issue.
Solana hacking investigation process
Even though Solana is currently under investigation, the number of hacked wallets continues to grow to 20 wallets per minute. Based on the search of one of the blockchain analysts, namely @zachxbt (Twitter), the wallet has been used since seven months ago. The wallet had a number of early Binance transactions and only reactivated after receiving stolen assets. Not only that, there are four other wallets suspected of being connected to the attack and only active about 10 minutes before the hack took place.
Mist Track, a blockchain transaction tracking company, thinks there is a possibility that the $580 million crypto funds that the four wallets successfully hacked will be transferred to a Binance wallet that was active seven months ago.
What to do in the face of a hack
Various ways can be done to avoid the risk of hacker attacks. If you have assets in the Solana hot wallet, you can secure your assets by moving the funds stored in the hot wallet to a cold wallet. In addition, you can transfer your hot wallet funds into a wallet balance stored in a centralized exchange (CEX). CEX uses hard wallets to store crypto assets that are stored, so transferring assets to CEX can be an alternative as a security measure.
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