Thieves Swipe $41 Million from Solana; Full Compensation Provided to SwissBorg Users.
In a surprising turn of events, SwissBorg, a prominent cryptocurrency platform, has fallen victim to a cyberattack. The attack, which targeted a compromised API used by Kiln, a third-party staking infrastructure provider, resulted in the theft of approximately 193,000 Solana tokens, initially valued at around $41 million.
The recent increase in the SOL price has seen the value of the stolen Solana rise to nearly $48 million. SwissBorg, in a swift response, has assured full compensation for all losses to affected Solana holders and will cover the loss using its own Solana treasury balances.
Less than 1% of SwissBorg's user base was affected by the hack. The company's CEO, Cyrus Fazel, made a statement on X Space, addressing the concerns of the affected users. SwissBorg is also working with international authorities, exchanges, and white-hat hackers to support investigations.
The attack on SwissBorg's staking service was executed by exploiting a vulnerability in Kiln's API. Hackers were able to inject false requests and withdraw funds, causing significant damages. However, SwissBorg's app and other earn products were not affected by the hack.
SwissBorg, with a community-managed asset totaling nearly $2 billion and around 890,000 users, has a strong presence in the crypto sector. The company's swift action and commitment to compensate affected users are commendable.
Meanwhile, the cyberattack on Kiln's API has increased the total damages in the crypto sector as reported by the FBI's Internet Crime Report in 2024 to $9.3 billion, a 66% increase from the previous year. This underscores the growing threat of cybercrime in the crypto sector and the need for robust security measures.
In a related development, Ripple CEO Brad Garlinghouse has warned about crypto criminals and plans to fight back and protect XRP holders with a new strategy. The crypto industry is bracing for more such attacks and is working towards strengthening its defences.
As the investigations continue, some of the Solana transactions have been blocked as part of the ongoing investigations. While the stolen Solana transactions have not been fully recovered, the swift action by SwissBorg and the ongoing investigations offer a glimmer of hope for the affected users.
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