Solana Wallets are being targeted by Hackers

NFT marketplace Magic Eden informed today about what appears to be a hacking incident on Solana-based Wallets.

The ongoing, widespread hack has witnessed as much as $8 million in funds drained so far across a number of Solana-based hot wallets.

Insights into Solana Wallet Hack

solana-wallet-hack

Solana (SOL) is presently trending on Twitter as numerous users are either reporting on the hack as it extends, or are conveying information regarding their lost funds themselves and also warning anyone having Solana-based hot wallets such as Phantom and Slope to move their funds into cold wallets.

Also read, Solana-based yield protocol suffered a 3.5 M loss in Flash Loan Attack

On August 2, Blockchain investigator PeckShield expressed that the widespread hack is likely due to a “supply chain issue” which has been exploited to swipe user private keys behind affected wallets. It stated the estimated loss so far is around $8 million. 

As mentioned earlier, Magic Eden confirmed the reports earlier in the day by communicating that there “seems to be a widespread SOL exploit at play that’s draining wallets throughout the ecosystem” as it reached out to users and requested them to revoke permissions for any suspicious links in their Phantom wallets.

Solana-based wallet providers including Phantom and Slope, and non-fungible token (NFT) marketplace Magic Eden are among those that have been active on the issue and sharing updates pertaining to the event.

In fact, Wallet provider Phantom reports that it is working with other teams to get to the bottom of the issue, however, it also emphasizes that it does not believe that this is a Phantom-specific issue.

Slope also expressed that it is currently working with Solana Labs and other Solana-based protocols to pinpoint the issue and repair it, though there were no major breakthroughs yet.

Twitter user @nftpeasant pointed out that as much as $6 million worth of funds were siphoned from Phantom wallets during a 10-minute period on August 2. In one instance it seems a Phantom wallet user had $500,000 worth of USDC drained from their account.

Popular blockchain detective and self-described @zachxbt also did some digging on the issue and disclosed that the hackers initially financed the primary wallet associated with this attack through Binance seven months ago.

The transaction history shows that the wallet stayed inactive until today before the hackers executed transactions with four different wallets 10 minutes before the attack started.

Additionally, there have been many reports circulating on how many wallets have been affected and the extent of the damage so far.

Crypto tracking and compliance platform Mist Track communicated through Twitter that as many as 8,000 wallets have been hacked, with $580 million sent to four addresses, yet, commentators on the post are uncertain about the number.

In addition, Ava Labs CEO and founder Emin Gun Sirer remarked that the number was at 7,000 plus wallets, a number which is increasing at around 20 per minute. He articulated that the transactions appear to be signed properly, and it is likely that the attacker has acquired access to private keys.


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