Major Solana exploit drains $5 million from thousands of wallets. Thousands of Solana-based hot wallets have reportedly been hacked and drained after a massive exploit.
According to multiple reports made on Twitter, many users are claiming that their Solana-based hot wallets such as their Phantom or Slope wallets are being drained, and their funds removed without their knowledge of permission.
It has not yet been confirmed what exactly happened that led to his large attack, but it is speculated that the widespread hack could have been due to a “supply chain issue” which was exploited by the hacker to steal user private keys.
The estimated loss from this hack ranges anywhere between $5 million to $8 million and over 8,000 wallets having been stolen from.
Crypto Twitter user and crypto developer @0xfoobar warns the crypto community that the best way for them to keep their funds safe from the massive exploit is to “transfer assets into a wallet which has never exposed a private key to potentially vulnerable browser extensions. That means hardware wallets, nothing else.”
Response To The Hack
Since the hacks first started, there have been a lot of response from both the community as well as Solana-based platforms.
“We are working closely with other teams to get to the bottom of a reported vulnerability in the Solana ecosystem,” The Solana-based hot wallet, Phantom said. “At this time, the team does not believe this is a Phantom-specific issue.”
Slope has also made a comment regarding the issue saying that they too are still looking into the exploit and are still in the process of sorting the issue out.
Upon further investigation, our team suggests not only to do the above but to also do the following:
1. Set up a new wallet with a new seed phrase
2. Transfer all your NFTs to your new wallet, then your liquid crypto
Or better yet..Move everything to a cold wallet/ledger
— Magic Ethen 🪄 (@MagicEden) August 3, 2022
Meanwhile, the Solana-based NFT marketplace, Magic Eden, has also stepped up against this issue by tweeting out ways for users to save their wallets from being drained, encouraging users to move their funds to a different wallet entirely.
The Solana blockchain team itself has yet to make any comments regarding this issue as the hacking seems to remain ongoing.