Crypto hack empties Solana wallets

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By Jake Perez, Editor at LinkedIn News

Hackers have targeted the Solana crypto ecosystem, stealing at least $5.2 million from roughly 8,000 internet-connected wallets. The attack is apparently ongoing and under investigation, though a Solana status update blames an accidental leak of users private keys from their Slope wallets. Users are being advised to migrate to hardware wallets and create a new access phrase.

Hackers have returned $9 million of $190 million swiped from Nomad after the blockchain bridge was attacked early this week, CoinDesk reports.

Solana wallets got hacked for $8 million (and counting). Here’s what went wrong and how the heist is going down. Coins necessarily optimize for certain features at the expense of others – a tradeoff. It’s called the Blockchain Trilemma and goes something like this: -SECURITY -DECENTRALIZATION -SCALABILITY All of the above are important to have. But here’s the catch. You can at best pick two out of three. Bitcoin for example, prioritizes security and decentralization. Security comes from the network’s computing power – currently at 200m TH/s, which is the equivalent of 4 billion laptops with standard GPUs working every second. The most raw computing power in the world. It also has the widest user base and largest node node count, making it the most decentralized. On the flip side, scaling needs to happen on higher layers as opposed to Bitcoin’s base layer. That’s because increasing capacity, throughput, and reducing latency while maintaining security & decentralization is hard. Bitcoiners argue this is the difficult but necessary path. Vitalik, originally a bitcoiner himself, became frustrated with the promise of P2P payments in face of the sluggish pace of scaling. He argued that scalability should happen through innovation at the base layer. That’s how Ethereum got started, which sacrifices decentralization. The switch to PoS is just the latest move in line with this thinking. The more you stake, the more ETH you get. This is a forcing function that concentrates more and more ETH and therefore validator control in fewer and fewer hands as the ETH rewards compound with its largest holders. As for Solana… Solana is probably one of the most centralized coins out there. That’s not necessarily a bad thing depending on what you want. That just leaves scalability and security to optimize. It’s famous for optimizing scalability with one of the highest carrying capacities, largest throughputs, and minimal latency. But with today’s exploit, the security feature has come into question. Hackers targeted the Solana ecosystem and were able to access private keys of wallets popular among users of the network. Now, millions in crypto are being drained out of thousands of hot wallets – especially Phantom & Slope seem to be affected. It’s unclear whether there is an issue with the Solana core code and is being checked by Solana together with audit and security firms. Solana has also struggled in the past with security incidents, including bot spam and DDoS attacks, causing network blackouts earlier this year. If a coin wants to succeed, it needs to absolutely nail two of the Trilemma’s three features. Will Solana be able to pull it off? #bitcoin #cryptocurrencies #money #business

Were only 4 days into August and crypto has already seen 2 major hacks. Hackers stole nearly $200M from a crypto startup Nomad and almost 8,000 Solana wallets have been drained as of yesterday. As reports of costly crypto attacks rise, the crypto security and compliance space is set to grow dramatically – obviously a 2022 trend on the rise. Investors are also taking note. Funding to the cybersecurity market in general has exploded, and a range of cybersecurity startups are building crypto-specific solutions. How will this impact the fintech development space you think?

Late Tuesday night, a lot of people using “hot” wallets (ie internet-connected addresses) to store their Solana SOL tokens found out that all their crypto had been stolen. The hack is ongoing, and the identity of the attacker is unknown. So far, what we do know: -Nearly 8,000 digital wallets have been drained of just over $5.2 million in digital coins includingSOL andUSD Coin(USDC), according to blockchain analytics firm Elliptic. -Elliptic chief scientist Tom Robinson tells CNBC the root cause of the breach is still unclear, but it appears to be due to a flaw in certain wallet software, rather than in the Solana blockchain itself.” The Solana network was viewed as one of the most promising newcomers in the crypto market, with backers like Chamath Palihapitiya and Andreessen Horowitz touting it as a challenger to ethereum with faster transaction processing times and enhanced security. But its been faced with a spate of issues lately, including downtime in periods of activity and a perception of being more centralized than ethereum. A major outage in June knocked the Solana platform offline for several hours. Ether, the native token of the ethereum blockchain, climbed as much as 6% in 24 hours, while SOL is trading nearly 3% lower https://cnb.cx/3BFxDRc

Ongoing solana attack targets thousands of crypto wallets, costing users morecnbc.com

Blockchain analytics company Chainalysis believes that $2 billion worth of crypto has been siphoned out of cross-chain bridges this year alone, which includes this week’s $190 million Nomad bridge exploit. Cross-chain bridges are used to send tokens between blockchains and are a popular tool used by the crypto community. Chainalysis said that the underlying technology of cross-chain bridges is still in its infancy and that many new models are being tested, leaving it open to attack. #cryptocurrencynews #hacks #crosschain

Chainalysis Estimates $2B Stolen From Cross-Chain Bridge Hacks This Yearcoindesk.com

A very painful day for many Solana holders, theVaultavofamily is angered, upset and our sympathies go out to all those affected. We must put an end to trading ‘Accessibility’ vs ‘Security’, hot wallets will always be accessible targets to sophisticated bad actors. Centralized storage of private keys is just not good enough and has a limited future. In fact the exposing of private keys at any point is a problem. It’s Vaultavo’s mission with our revolutionary custody solution and technology to eradicate these horrendous acts and allow for safe, easy and secure access for all to participate in crypto and blockchain activity. You should be your Private Key… and then it is completely#unhackable. This short video directly shows how our solution could never fall foul to this type of disgusting hack. Vaultavo won’t stop until every crypto holder, across every layer 1 is fully protected and secure. Please share and help create awareness of the technology which will help move the digital asset market forward, the first challenge is making sure everyone knows what is possible. #solana, #solanahack, #crypto, #cryptocustody, #cryptosecurity, #privatekeymanagement, #biometrics

Hackers are testing the security protocols of Solana, or so that seems because a big attack is ongoing targeting thousands of crypto wallets, costing users more than $5 million so far. Starting Tuesday evening, multiple users began reporting that assets held in hot wallets that is, internet-connected addresses, including Phantom, Slope and Trust Wallet had been emptied of funds. It seems that the Coin attacked are SOL and USDC. The Twitter account Solana Status confirmed the attack, noting that as of Wednesday morning, approximately 7,767 wallets have been affected by the exploit. Elliptics, a blockachain analytics firm, estimates is slightly higher at 7,936 wallets. Solanas Sol token, one of the largest cryptocurrencies after bitcoin and ether, currently ranked at #9 with market cap of 12 Billion USD, fell about 8% in the first two hours after the hack was initially detected. Who still use Hot Wallets is still beyond my understanding…. for my followers who have a very high tolerance for risk, please at least use Cold Wallets if you want to take a punt on Crypto Currencies! Please feel free to comment. I always value the opinion of my followers #economy #economics #finance #markets #portfoliomanagement

Thousands of Solana Wallets Hacked in Crypto Cyberattackwsj.com

Solana users are having a bad day, with an ongoing hacker draining funds from wallets. This Dune dashboard (https://lnkd.in/gixQhvYU) shows over 4MM stolen from 9k+ wallets! Here’s a solid breakdown of what’s happened so far based on the facts: https://lnkd.in/g8MieCH6 I hope the Solana engineers can find the attack vector soon and that it’s closeable to prevent further losses. What will the fallout be from today’s events? Two initial thoughts: – Those who lost crypto may decide to sell their NFT holdings to recover some funds, hurting the Sol NFT market – The two recommended solutions for now are to move funds to a central exchange or a hardware wallet, which will strengthen the advertised long term benefits of using both, and moving more funds to the likes of FTX Binance KuCoin Exchange #crypto #solana #hack What are your thoughts Daniel Akpobare?

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Crypto is taking another beating in the news today as Thousands of Solana Wallets have been Hacked Hackers targeted the Solana ecosystem early Wednesday with thousands of wallets affected in the latest hit to the cryptocurrency market after bridge protocol Nomad was attacked at the start of the week. While the total value of the stolen assets was unclear, four Solana wallet addresses drained approximately $8 million from victims, according to security firm PeckShield. More than 7,000 wallets appear to have been affected, with the security incident draining them of their SOL tokens and USDC stablecoins, Binance Chief Executive Officer Changpeng CZ Zhao said on Twitter. I am definitely not an expert on the technical aspects of crypto, but someone who is an expert…DeFiSafety is not exactly a fan of Solana DeFiSafety review of Solana – https://lnkd.in/gtyCrmA4 Crypto projects are proving a rich vein for hackers and the industry has suffered numerous attacks this year. Solanas woes come days after Nomad — a bridge protocol for transferring crypto tokens across different blockchains — lost close to $200 million in a security exploit on Monday. More than $1 billion has already been stolen from bridges in 2022, according to a June report by forensics firm Elliptic. Read more about the Solana hack at Bloomberg LP – https://lnkd.in/gAkNyUVS #cryptocurrency #crypto #web3 #solana #softwarewallet #hardwarewallet #cryptowallet #technology #blockchain

Crypto Takes a Fresh Hit as Thousands of Solana Wallets Hacked – BNN Bloombergbnnbloomberg.ca

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