Crypto

Cryptocurrency: 8,000 investors lost everything in a major hack

Solana, the ninth most valuable cryptocurrency on the market, has been hacked. Using a mysterious vulnerability, hackers managed to siphon off almost 8,000 digital wallets in a few hours. Over $6 million was stolen.

On the night of August 2-3, 2022, the Solana network fell victim to a major computer attack. Nearly 8,000 digital wallets, including Phantom or Slope wallets, have been completely deflated. The mobile app and extension of both wallets are affected. Apparently, the affected wallets have been inactive for several months.

All funds were transferred to addresses belonging to the hackers. Blockchain analysts have identified four addresses. It is still unknown who is behind the attack by hackers.

“Engineers from several ecosystems, with the help of several security companies, are investigating empty wallets on Solana,” Solana’s official Twitter account says.

Mysterious security breach

During the operation, the hackers seized “more than $6 million” in Solana and USDC, a widely used stablecoin. According to the team in charge of the network, “the flaw allowed the attacker to withdraw funds from multiple wallets.”

The origin of the breach is not yet known, but engineers are currently investigating it. There are still many gray areas at this stage. Per Anatoly Yakovenko, co-founder of Solana, this could have been an attack on the supply chain of the iOS operating system. This observation has yet to be confirmed, clarifies the person in charge.

“Empty wallets should be treated as compromised and thrown away,” advises Solana’s team.

Fortunately, users who invested in a hardware wallet were not affected by the attack. As a reminder, a hardware wallet is a cold storage solution that takes the form of a USB key. Without this physical key, it is impossible to access your cryptocurrencies. Generally considered the safest way to store digital assets. One of the most established brands in the wallet sector is the French startup Ledger.

If you hold cryptocurrencies in a Phantom or Slope wallet, we advise you to move everything to a cold storage solution. If you don’t have a hardware wallet handy, send funds to an exchange like Binance, FTX, Coinbase, or Crypto.com. Your assets will be safe until Solana engineers find the source of the problem.

According to OtterSec, a blockchain analysis company, the hackers may have captured users’ private key. This is why Solana recommends that affected users change their recovery phrase if they opt for a hardware wallet.

See also: How YouTuber Crypto Gouv stole 4 million euros by deceiving his subscribers

The ninth cryptocurrency on the market

Solana is currently the ninth most valuable cryptocurrency in the ecosystem after Ripple XRP and Cardano. Developed by California-based startup Solana Labs, it is an alternative to the Ethereum network, promising faster transactions and lower fees. According to Solana’s founders, the network is capable of processing 60,000 transactions per second.

Since its official launch, Solana has established itself as one of the most active projects in the industry. Determined to facilitate access to decentralized finance, Solana has benefited enormously from the advent of non-fungible tokens (NFTs). The network has also been added to major marketplaces such as OpenSea. Magic Eden, a platform for selling digital works, even relies solely on the Solana network.

Recently, Solana Labs even entered the smartphone market. Backed by Osom, a brand born from the ashes of Essential, the firm developed the Saga, the first Android smartphone to integrate services from the Solana ecosystem. To accompany the arrival of the phone, the startup even opened a physical store in New York.

Repeated crashes

Unfortunately, in recent months, Solana’s growing popularity has waned. In 2022, repeated outages regularly paralyzed the network, preventing even the slightest transaction. In May, the network collapsed due to too many transfers.

In early June, the network was again unavailable for several hours due to a bug in the system. The Solana Labs teams were forced to restart the network in an emergency, shattering user confidence. This was the 8th outage this year. After these events, the credibility of Solana was shaken.

© CoinGecko

The massive hack that the network has fallen victim to is unlikely to help matters. Not surprisingly, the announcement of the hack also affected the price of the cryptocurrency. Solana is currently trading around $39, down 1.9% in 24 hours.

This is the second hack of the week in the world of cryptocurrencies. On the night of August 1-2, 2022, Nomad, the bridge connecting blockchains, fell victim to an attack. By exploiting a loophole in the protocol, hackers got away with $190 million in digital currency.

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