Solana Suffers Exploit — Close to 8,000 SOL-Based Wallets Have Been Compromised
The Solana smart contract project is suffering from issues once again after it was discovered that close to 8,000 Solana-based wallets have been compromised. Solana is asking victimized wallet owners to complete a survey and the team stressed that “engineers are investigating the root cause.”
Solana Investigates Massive Wallet Exploit, Root Cause of the Hack Is Still Unknown
After the chain had halted on a few occasions in the past, Solana users are now dealing with an extensive wallet vulnerability that affected specific wallet software such as Phantom and Slope. Solana developers and victims discovered the exploit on Tuesday evening (EST) and the hacker’s method of attack is currently unknown.
The blockchain security firm Peckshield noted that it’s possible the exploit stemmed from a supply chain attack. Solana Labs co-founder and CEO Anatoly Yakovenko also stated that the exploit likely derived from a supply chain attack.
“Seems like an iOS supply chain attack. Multiple plausible wallets that only received sol and had no interactions beyond receiving have been affected,” Yakovenko wrote. “Android seems to be affected as well. All the confirmed stories so far have had the key imported or generated on mobile. Most of the reports are Slope, but a few Phantom users as well,” the Solana Labs CEO added.
Solana is suffering an exploit, which has drained millions from multiple wallets.
Cause of SOL exploit is still unknown. pic.twitter.com/uvoUO8yNlO
— Hector Lopez (@hlopez_) August 3, 2022
Presently, the amount of stolen funds from the hack is also unknown, as the security firm Anchain estimated the hack to be around $5 million, and Peckshield’s estimate was around $8 million. The Solana Status Twitter account explained what the Solana team had discovered so far.
“Engineers from multiple ecosystems, with the help of several security firms, are investigating drained wallets on Solana. There is no evidence hardware wallets are impacted,” the team said.
The Solana team also left a survey for victims that asks a number of specific questions like what address was affected by the exploit and what type of wallet the user leveraged. Victims need to detail exactly when they downloaded the wallet and if the wallet was an iOS version, Android version, or Windows, Mac, or browser version.
One question asks victims if they generated a seed phrase from within the compromised wallet and the survey wants to know where and when the seed phrase was created. The seed phrase question is “required,” according to the Solana hack survey hosted on the Solana Foundation’s website.
Solana’s recent wallet exploit follows the blockchain’s issues with block production in September 2021 and June 2022. Between those two dates, Solana’s network had to stop block production a total of eight times.
The exploit this week has damaged solana’s (SOL) market gains and out of the top ten crypto assets, SOL is the only token down in value against the U.S. dollar on Wednesday. SOL is now in the ninth position as well, when it used to be a top-five contender in the crypto economy a few months ago.
“It is not yet clear at this time whether the attackers exploited a vulnerability in the Phantom wallet or some other hidden weakness in the broader Solana ecosystem,” Mikkel Mørch, the executive director at the digital asset investment fund ARK36 told Bitcoin.com News on Wednesday. “But the hack will definitely cast a shadow over Solana’s credibility as a better alternative to Ethereum – especially when it comes to security. It may even give Ethereum some additional boost from the narrative perspective as the safest and most reliable defi ecosystem,” Mørch added.
What do you think about the recent Solana exploit and how it affected close to 8,000 SOL-based wallets? Let us know what you think about this subject in the comments section below.
Analyst Predicts Pullbacks for Ethereum Classic and One Low-Cap Altcoin, Updates Outlook on Solana and ApeCoin
A closely tracked crypto strategist is predicting dips for two altcoins while updating his forecast for Solana (SOL) and ApeCoin (APE).
Pseudonymous crypto analyst Altcoin Sherpa tells his 180,700 Twitter followers that smart contract protocol Ethereum Classic (ETC) looks poised for a significant pullback after its steep rally over the past few weeks.
“ETC: comfy in my short from $39s as a hedge. I think this goes to $33 and $30 (potentially) at a minimum. Taking profits there.”
At time of writing, ETC is trading for $35.80, over 16% above Altcoin Sherpa’s downside target of $30.
Next up is Optimism (OP), a layer-2 scaling solution for Ethereum (ETH). The crypto strategist believes OP is also likely to witness a deep correction after surging over 286% in less than three weeks.
“OP: I think this thing goes to $1.12 at a minimum.”
OP is trading at $1.55 at time of writing.
Looking at Ethereum rival Solana, Altcoin Sherpa says SOL is likely to experience more corrective moves in the coming days now that it is trading below a crucial level.
“For continuation, you really want to see this form a higher low around $39ish. If that level breaks, I think that things could get ugly quickly. I’m still cautiously bullish, and I would look to long around that level if you think things are bullish in mid-term.”
At time of writing, SOL is valued at $37.99.
The last coin on the trader’s radar is Bored Ape Yacht Club (BAYC) offshoot project ApeCoin. According to Altcoin Sherpa, APE is primed for a rally to $10 before any significant retracements.
“Still mad I never got fully filled on my reloads in the low $5s. This one is continuing to grind up, but I’m still comfy in my entries in mid/high $5s.”
APE is swapping hands for $6.71 at time of writing.
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Following Solana Wallet Hack, Founder Anatoly Yakovenko Tells SOL Holders To Get Crypto Out of Mobile Platforms
Solana co-founder Anatoly Yakovenko says that the hack that compromised over 8,000 SOL holders’ wallets may be due to issues with mobile platforms.
Early on Wednesday morning, blockchain security firm PeckShield reported that an attack on Solana wallets stemmed from a supply chain hack, which is when an outside party or provider with access to the victim’s data is compromised.
“The widespread hack on Solana wallets is likely due to the supply chain issue exploited to steal/uncover user private keys behind affected wallets. So far, the loss is estimated to be $8,000,000, excluding one illiquid sh**coin (only has 30 holds & maybe misvalued $570M)”
Near the same time, Solana’s Yakovenko speculated that the attack came from a vulnerability in Apple’s iOS.
Addressing his 191,000 followers, he said,
“Seems like an iOS supply chain attack. Multiple plausible wallets that only received sol and had no interactions beyond receiving have been affected.
As well as key that were imported into iOS, and generated externally.”
However, users with Android mobile devices also reported their assets being drained.
Solana Status, a Twitter page dedicated to updates on the Solana ecosystem, said in a thread that there was no evidence yet that the attack has been able to compromise hardware wallets.
“There’s no evidence hardware wallets have been impacted – and users are strongly encouraged to use hardware wallets.
Do not reuse your seed phrase on a hardware wallet – create a new seed phrase.
Wallets drained should be treated as compromised, and abandoned.”
Likewise, Yakovenko also tweeted that SOL holders worried about the attack should move their assets out of mobile wallets, preferably into popular hardware wallet Ledger.
Phantom, one of the most widely used Solana wallets, stated that it did not believe the issue stemmed from its systems.
“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.”
At time of writing, SOL has been relatively unaffected by the news, trading at $40 and down 3% on the day.
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The post Following Solana Wallet Hack, Founder Anatoly Yakovenko Tells SOL Holders To Get Crypto Out of Mobile Platforms appeared first on The Daily Hodl.
Almost 8,000 Solana Wallets Drained in Suspected “Supply Chain” Exploit
At least 7,767 Solana wallets have been affected. Hackers Target Solana Users Hackers have drained thousands of Solana wallets in an ongoing attack. Engineers from multiple ecosystems, with the help…
Solana Wallets Targeted in Latest Multimillion Dollar Hack
The exploit appears to be impacting users of internet-connected “hot” wallets, with users reporting that their funds have been drained unknowingly.