Cryptocurrency

Hackers Target Solana Wallets amid Bearish Wave

More than 8,000 Solana Wallets were compromised in a hacking attack, with approximately $7 million stolen in SOL, SPL, & other tokens amid the bearish form.

Solana reported a hacking attack that compromised over 8,000 wallets while writing this post. The hacking attack is believed to have stolen around $7 million in funds in SPL, SOL, and other tokens. Most of the wallets targeted by the hackers were inactive for at least six months.

The news adds to the ongoing grim bearish wave of Solana on the trading board. The prices have further decreased after the attack while the team looks to resolve the matter. What is causing more worry is that the number of wallets and amount of funds is increasing every minute the issue remains unsolved.

Multiple Solana addresses were targeted after their private keys were compromised. Users took to the internet to report the issue after they noticed that funds were being erased without their association in the process.

The specific reason for this attack is currently unknown, with the teams looking into the matter. As per one of the users of Twitter, the attack could have been an upstream dependency supply chain attack.

Keeping funds in the wallet is not safe at the moment, and users have been recommended to move their funds to a safer location which could be;

  • An offline cold hardware wallet; or
  • An authentic centralized exchange

The Solana community is not pleased at the moment. Prices were not up to the mark amid the bearish wave, and the attack has further decreased the price. Wallet providers like Phantom have personally taken note to address the concerns of their users.

After users reported the issue to seek clarification, Phantom published a tweet saying that it was working closely with teams to get to the bottom of the vulnerability in the Solana ecosystem. Phantom added that the report is not believed to be a Phantom-specific issue.

Many members have speculated that the attack could have directly resulted from Magic Eden’s Solana-based NFT marketplace, hinting that the vulnerability could not be limited solely to the Solana blockchain.

Experts and communities are figuring out a way to protect their funds and avoid any further damage to the network. Solana prices fell 9% since the exploit was reported. While the prices appear to be recovering slowly, any further loss could make it difficult for the ecosystem to register recovery on the trading board.

Lark Davis, an active crypto investor, acknowledged the situation and published a tweet saying that some sort of HUGE ecosystem hack was going on across the Solana network. He added that users must consider shifting to a hardware wallet or an exchange until the main cause is identified.

The Solana community is not pleased; however, all the relevant teams are doing their best to get to the bottom of the matter. The primary objective is to avoid any further loss and theft of funds from the wallet.

It is still recommended to consider a hardware wallet or an exchange until further notice is issued.

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