Solana Hot Wallets Suffer Ongoing Attack, Roughly $5M Stolen Thus Far
August 03 2022 - 4:30PM
NEWSBTC
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. 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: Statement from the Slope team
pic.twitter.com/uOEdO25x8c — foobar (@0xfoobar) August 3, 2022
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. 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.” 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.
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