Crypto Solana hack: All you need to know

The Solana blockchain has become the latest victim of a crypto fin-crime. Thousands of its users reported their funds being wiped clean and their wallets had been compromised. In the blink of an eye, Solana users lost millions of dollars, some of them even having lost their life savings, according to a report by The Indian Xpress.

How Did This Happen?

The perpetrator exploited a flaw in the Solana ecosystem, draining about 7,767 “hot” wallets where Solana users stored their funds.

Hot wallets are a form of digital storage for virtual currency which can be accessed online. It is always connected to the internet, which is why it’s vulnerable to online attacks.

According to blockchain auditor PeckShield, the attack happened due to a “supply chain flaw.” This flaw enabled the attacker to steal private keys from wallets. A private key is like a secret number that is used for signing transactions and proving ownership of a blockchain address.

The overall loss reportedly stands at $8 million. This attack follows another hack reported yesterday where an online crypto service named Nomad lost $200 million.

The Solana attack has also affected popular hot wallets like Phantom and Slope.

We are working closely with other teams to get to the bottom of a reported vulnerability in the Solana ecosystem. At this time, the team does not believe this is a Phantom-specific issue.

As soon as we gather more information, we will issue an update.

— Phantom (@phantom) August 3, 2022

The exact details of the attack are still unclear but it has been reported that the hack primarily affected mobile wallet users.

Solana surged in popularity as users saw how it was faster and more energy efficient than Ethereum or Bitcoin. In 2021, Solana attracted funding of $314 million.

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