SwissBorg confirmed a SOL hack that resulted in the loss of around $41 million worth of Solana (SOL). The hack was due to an exploit on an external DeFi wallet associated with the SwissBorg SOL Earn strategy.
User balances in the app remain completely safe, and the SOL hack only affected less than 1% of users.
What Happened?
According to SwissBorg CEO Cyrus Fazel, the attack compromised a partner API. By doing so, the hacker stole about 192,600 SOL, which is roughly 2% of SwissBorg’s total assets. Other Earn strategies and all other user funds are secure.
As soon as they detected the exploit, SwissBorg’s Team contained the situation and stopped any further losses. However, SOL Earn redemptions have been temporarily paused while recovery operations continue.
SwissBorg’s Plan to Fix This
- Recovery Operations: Working with white-hat hackers, Fireblocks, and law enforcement to recover stolen funds.
- Immediate Support: Providing funds out of its treasury to pay users immediately to continue with the recovery process.
- Transparency: Frequent updates to social media and commitment to a complete incident report after the conclusion of the investigation.
SwissBorg is also contacting affected users by email to clarify the situation.
Moving Forward
The SOL hack was a major crisis, but SwissBorg’s swift response and willingness to keep its users safe have served to preserve trust. With solid partnerships and a well-defined recovery strategy, SwissBorg can come out of this incident stronger and safer.
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