Solana wallets compromised for multi-million hack, resparks the wallet debate

economictimes.indiatimes.com:

Ethereum Killer' by the crypto fanatics, Solana has been hit hard in the latest crypto winter. However, the blockchain network is buzzing over its latest ecosystem exploit which has wiped off tokens worth millions. Users have reported that their funds have been drained out without their knowledge and the latest hack has been on the 'hot' wallets which are connected to the internet including Phantom, Slope and TrustWallet.

The attacker somehow obtained the ability to sign (initiate and approve) transactions on the behalf of users, suggesting a trusted third-party service may have been compromised in a so-called supply chain attack. Following the hack, Solana plunged about 10 per cent to $38.28 level on Wednesday. However, the volumes rose 75 per cent as the tokens worth $1.91 billion exchanged hands in the last 24 hours, the coinmarketcap data suggested.

However, the quantum of drained funds is not confirmed yet and it is reported the attack is not over either. Several addresses linked to Solana have been attacked. Sathvik Vishwanath Co-Founder, CEO Unocoin said that Solana is a blockchain with its own token, that works as the gas to confirm the transactions on that blockchain, witnessing numerous hack attempts on the wallets supporting this token.

«A recent successful attempt drained away about $560 million worth of Solana from various user wallets and this has sent shivers in the Solana ecosystem» he added. «A part of the reaction is the decreased prices of the token.» According to experts, this is an opportunity to also remind investors to access the health of the crypto ecosystem. Solana has faced outage issues in the past.