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Solana crypto wallets worth millions drained in a major hack

IANS
Updated: August 3rd, 2022, 16:24 IST
in Sci-Tech
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New Delhi:  In yet another major cryptocurrency hack, the popular blockchain Solana on Wednesday reported that an unknown bad actor has drained funds from 7,767 wallets on the Solana Network.

However, Blockchain security firm SlowMist claimed more than 8,000 wallets had been drained worth around $8 million.

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Solana is a high-performance Blockchain supporting builders around the world creating crypto apps that scale today.

The attack has affected “hot” wallets which are always connected to the internet, allowing people to store and send tokens easily.

“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,” said Solana.

The exploit has affected several wallets, including Slope and Phantom. This appears to have affected both mobile and extension.

“There are 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,” Solana informed.

“Wallets drained should be treated as compromised, and abandoned,” it added.

The attack also compromised other wallets including Phantom, Slope, Solflare, and TrustWallet.

Phantom, a Solana-based wallet that hit $1.2 billion in valuation earlier this year, said it’s “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,” the wallet developer said.

This could be a “supply chain attack” that manages to steal users’ private keys.

The attack on Solana came as cryptocurrency service Nomad suffered a “chaotic” attack, with hackers draining almost $200 million in digital funds from the company within a few hours.

IANS

Tags: drainedHackSolana crypto walletsworth
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