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Solana (SOL) Points the Finger at Slope Finance for $8M Hack

  • The Solana (SOL) hack yesterday already has a body count of over 8,000 wallets.
  • Devs and crypto analysts confirmed the breach is not directly related to SOL blockchain.
  • Mobile wallets provided by Slope Finance reportedly leaked the seed phrases due to the software flaw.

Entering day two of the shocking hack on the Solana (SOL) blockchain, which raided at least 8,000 wallets and looted over $8 million, the engineers behind Solana diagnosed that the affected wallets were first created or imported on Slope mobile wallet.

A Piece of Advice from Solana’s Co-Founder

Commenting on the situation, Solana’s co-founder, Anatoly Yakovenko, labeled the attacker as “lazy at driving all the paths.” Most importantly, Yakovenko didn’t beat around the bush and strongly recommended regenerating the seed phrase for any user who’s “touched” the Slope mobile wallet.

Apparently, the trouble began when Slope’s mobile wallet sent the seed phrases in plain text to a third-party external integration partner. As previously reported, Phantom users were also among the hardest-hit ones, but that happened because of the imported phrases from Slope. What’s more, the compromised wallets on the Ethereum (ETH) blockchain also suffered as a result of the reused seed phrases on Slope wallets.

As if that wasn’t enough, some crypto analysts believe that Slope might have logged their clients’ seed phrases on a centralized server, which would explain the $6 million exploit in a period of 10 minutes. Even though the investigation is ongoing, the developers and the ecosystem teams of Solana confirmed that the staggering $8M exploit is not to be blamed on the blockchain itself.

Solana (SOL) Price Barely Affected

At press time, the 9th cryptocurrency by market cap, Solana (SOL), trades at $38.92, according to CoinGecko. Slightly in the red for the past week, SOL still has yearly gains in double digits at 13.5%.

On the Flipside

Read more about recent exploits in crypto: the $190M Nomad Bridge drain

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.