The Solana ecosystem was hit by a hack that drained millions of cryptocurrencies from 8,000 hot wallets

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Hackers have targeted the Solana ecosystem, draining crypto funds from thousands of internet-connected hot wallets. Attacks like this are common with blockchain platforms, but the news is still significant given the praise Solana has received as one of the fastest and cheapest ecosystems for trading digital assets.

It appears that the hackers were able to steal Solana’s cryptocurrency (SOL) and some that are compatible with the Solana blockchain, such as the USD Coin (USDC) stablecoin. As the attack continues, the value of the stolen assets is unclear, but reports from independent analysts and security firms like PeckShield estimate losses at $ 8 million.

Solana has had a history of security incidents, including spam bots and Distributed Denial of Service (DDoS) attacks reported. Meanwhile, it is also collecting deposits for the Saga phone, which is rumored to launch next year with support for decentralized apps built into the network.

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This does not appear to be a bug in Solana’s core code, but in the software used by several software portfolios popular with network users.

Updates will be posted on https://t.co/ivyoIbdCDP as they become available. 2/2

Solana State (@SolanaStatus) August 3, 2022

Solana’s official Twitter account now indicates that around 8,000 (from 7,767) wallets appear to have been affected by the attack, including those operated by third-party vendors Phantom and Slope. The company did not explain the cause of the attack, but noted that there was no evidence that hardware wallets (which weren’t connected to the internet) had been affected.

In a tweet, the company’s status update states: This does not appear to be a bug in Solana’s core code, but in the software used by several software wallets popular with network users.

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However, on Twitter, Solanas co-founder Anatoly Yakovenko explained in more detail that hacking looked like a supply chain attack, targeting both iOS and Android apps (meaning attackers have found a vulnerability in connected apps or browser extensions). As Decrypt reports, transactions are signed with users’ private keys, suggesting that attackers have somehow compromised the seedphrase used to secure their wallets.

Updated Aug.2 at 9:35 am ET: Added the latest Solana updates.

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