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Massive Solana Hack Drains $8M Across 8,000 Wallets

An ongoing Solana (SOL) exploit affecting hot wallets around the network seems to be spreading like wildfire. On Wednesday morning, phrases like “Solana hack” and “Solana exploit” were already trending on Twitter, and crypto experts have stepped up to provide advice for those affected, while a global solution to the problem is sought.

Crypto Phantom Who Haunts Hot Wallets

Firstly, it’s very important to understand that the hack appears to have stemmed from an underlying issue with Solana-based hot wallets—mainly those on Phantom and Slope. As Solana Status reported on Twitter that “there is no evidence [that] hardware wallets are [being] impacted”. One potential method being suggested to safeguard against the hack is for users to move their Solana (SOL) from hot wallets to a cold wallet. According to YouTube channel ‘CryptoTips’, the Ledger cold wallet is endorsed as the most suitable and safe option.

Alternatively, SOL holders can move their funds onto a centralized crypto exchange in order to avoid the ongoing “Minesweeper” situation, as the hack is yet ongoing and the Solana blockchain’s engineers are still in search of a resolution.

Some users have reported that as much as $6 million in SOL was looted from Phantom wallets within just 10 minutes of the hack’s origin. Phantom has addressed the issue publicly, thating that “at this time, the team does not believe this is a Phantom-specific issue”. Be that as it may, it has inarguably been one of the hardest-hit wallet providers, along with Slope Finance.

A Slippery Slope for Solana (SOL)

With Twitter users boiling with heated remarks, crypto analysts have recommended revoking any and all suspicious permissions on their Phantom wallets. Some crypto enthusiasts are coping with the situation on Twitter by mockingly asking the fraudsters to instead “hack into Celsius and resume withdrawals”, while others still are simply displeased with the timing of the Solana outage.

According to Solana analyst OtterSec, a private key compromise could be to blame for igniting the exploitation of Slope Finance’s hot wallets. Moreover, the hardest hit victims of the shocking hack so far have been wallets that have been inactive for at least half a year. Moreover, some crypto experts have outlined their belief that the attack was planned 7 months ago, as the hacker’s wallet was funded through Binance in February 2022.

The out-of-hand situation seems to have minorly impacted Solana (SOL) market price, with the token’s value down 1.9% over the last 24 hours. At press time, Solana (SOL) trades at $39.33, but has thus far maintaining a healthy 18% increase since last month.

On the Flipside

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Tadas Klimasevskis is a blockchain journalist and content creator, focusing on the latest tendencies of the crypto world and digging deeper into specific innovations like music NFTs, gaming NFTs and Metaverse. Vast experience in social media lets Tadas quickly spot what’s going on in the crypto industry and deliver a story with a unique spin.