solana, wallet, hack, security

Source: AdobeStock / Natallia

The team behind the Solana (SOL) blockchain has tied the widespread hack that affected over 8,000 wallets and resulted in the loss of over USD 8m worth of funds to the closed-source Slope wallet.

“After an investigation by developers, ecosystem teams, and security auditors, it appears affected addresses were at one point created, imported, or used in Slope mobile wallet applications,” the official Solana Status Twitter account said.

In an official statement, Slope neither confirmed nor rejected the claim, but said that “nothing is yet firm” and that they currently have “some hypotheses as to the nature of the breach.”

“We are actively conducting internal investigations and audits, working with top external security and audit groups,” the Slope team said, asking users to create a new and unique seed phrase wallet and transfer all their assets to this new wallet.

Slope is a web-based, non-custodial crypto wallet and browser extension that allows users to manage assets on the Solana blockchain.

As reported, an ongoing Solana hack that affected more than 8,000 wallets drained millions worth of funds from users. The exact amount of lost funds varied between USD 4.5m and USD 8m worth of funds, depending on the source, but per the dashboard provided by the scanning tool for the Solana ecosystem, Solscan, at 7:30 UTC on Thursday morning, a total of USD 8.58m has been transferred to the hacker’s wallets so far.

The Solana team has rejected any possibility that the hack was a result of a bug with the blockchain’s core code. “This does not appear to be a bug with Solana core code, but in software used by several software wallets popular among users of the network,” the team said.

There is no evidence the Solana protocol or its cryptography was compromised.
3/3

— Solana Status (@SolanaStatus) August 3, 2022

The Phantom wallet team, who had previously assured users that the Solana hack is not “a Phantom-specific issue” despite the fact that some Phantom wallets were drained, noted that those wallets’ holders had previously interacted with a Slope wallet.

“Phantom has reason to believe that the reported exploits are due to complications related to importing accounts to and from Slope,” the Phantom team tweeted.

Meanwhile, the crypto developer who goes by Foobar on Twitter claimed that the Slope wallet may have logged plaintext seed phrases on their own centralized servers.

“My god, so Slope was sending plain text private key and seed phrases to a server,” crypto veteran Adam Cochran said. “There is absolutely no acceptable design reason for that. I expected a string appending somewhere incorrectly as a leak but this is labelled… what the hell?”

The widespread hack ostensibly began on Tuesday, as users started reporting that their funds were drained without their knowledge from major hot wallets, including Phantom, Slope, and TrustWallet. Some affected users claimed that they haven’t interacted with any contracts in more than 40 days.

Blockchain security firms were quick to determine that transactions were signed by the actual owners, suggesting some sort of private key compromise. The hack did not affect hardware wallets.

Notably, despite the large extent of the hack, Solana’s native token SOL has held on pretty well. At 7:30 UTC on Thursday morning, it’s trading at USD 39.32, up 1.8% in a day and down 2.3% in a week. 

____

TECH NEWS RELATED

This Week in Coins: Ethereum and Avalanche Rally, Crypto Winter Still Not Over

Leading coins rose in anticipation of the Ethereum merge. But there are still signs of ongoing liquidity problems in the industry.

View more: This Week in Coins: Ethereum and Avalanche Rally, Crypto Winter Still Not Over

Decentraland Consolidates Near $1.05 – Can MANA Attract Buyers Now?

Decentraland (MANA) shows an uptick after it has successfully breached a critical supply level adjacent to $0.9405. Decentraland (MANA) on an uptrend following breach on critical supply mark near $0.9405. MANA price remains bullish with a daily candlestick hovering above $1.0605 hinting further gains. MANA price plunged for the ...

View more: Decentraland Consolidates Near $1.05 – Can MANA Attract Buyers Now?

Biggest Movers: MATIC, SOL Move Towards 4-Month Highs on Saturday

Polygon rallied to its highest point in nearly four months on Saturday, as the token climbed to the $1.00 mark to start the weekend. Solana was also trading at a multi-month high, as it rose by over 10% earlier in today’s session. As of writing, the global crypto market ...

View more: Biggest Movers: MATIC, SOL Move Towards 4-Month Highs on Saturday

Crackdown on Tornado Cash Was Just Round 1

Since Monday's crackdown on Torndao Cash, the DeFi sector is faced with a choice: remain proudly non-compliant or bend the knee.

View more: Crackdown on Tornado Cash Was Just Round 1

Shiba Inu (SHIB) Buildup At This Price Level Could Be Favorable

Shiba Inu (SHIB) price hovers above 20 EMA and 50 EMA with the bulls taking control of the pace. Shiba Inu showing an intense bullish trend SHIB trailing above 20 EMA and 50 EMA SHIB retests at the $0.0126 mark; hints at high volatility SHIB has seen a robust ...

View more: Shiba Inu (SHIB) Buildup At This Price Level Could Be Favorable

Lightning Speed: Taro Wants To Abolish Cross-Border Payments, Disrupt The Market

Have you heard about Taro? It’s an improvement proposal for the Lightning Network that Lightning Labs introduced in April. “Taro makes Bitcoin and Lightning multi-asset networks,” the company claims in the latest edition of their newsletter. They also explain in simple words what the protocol does, how it does ...

View more: Lightning Speed: Taro Wants To Abolish Cross-Border Payments, Disrupt The Market

Crypto Projects To Keep An Eye During The Bear Market: Zompot, Cardano, and Aave

Disclaimer: The text below is an advertorial article that is not part of Cryptonews.com editorial content. Since they have dominated the general finance sector for the past three years, cryptocurrencies have become a worldwide craze.  This is due to the market for cryptocurrencies consistently demonstrating that it is a good alternative to ...

View more: Crypto Projects To Keep An Eye During The Bear Market: Zompot, Cardano, and Aave

Earn Rewards With New Crypto Quilvius By Signing Up Through Binance

Disclaimer: The text below is an advertorial article that is not part of Cryptonews.com editorial content. Quilvius (QVUI) is a new crypto project entering the market and is focused on NFTs and the Metaverse. Whilst this may sound common, Quilvius is a unique project to enter the crypto world. Targeting an audience ...

View more: Earn Rewards With New Crypto Quilvius By Signing Up Through Binance

How to avoid third-party cookies in every browser

Ethereum Tops $2,000 as Network Approaches Merge Event

Solana Price Positive As It Trades Near $44, Are The Bulls Back On Chart?

Ethereum Price Broke Past $1,800 Despite Higher Demand At Lower Levels

Japan Appoints Political Heavyweight as New Digital Minister, Boosting Web3 Hopes

Microsoft's Delay in Patching 'Dogwalk' Flaw Baffles Security Researchers

Tornado Cash Ethereum Token Down Over 50% After Sanctions

Bitcoin’s Privacy Problem—And What Cypherpunks Are Doing to Solve It

Bitcoin Is An alternative To Economic Condition, Says CEO Of Franklin

OpenSea Changes Stolen NFT Policy Following User Outcry

New Findings Shows Institutional Investors Take More Interest In Ethereum

BullVPN Review - Best VPN for Security

OTHER TECH NEWS

Top Car News Car News