Solana-Based Wallet Hack Rampages Ecosystem

Solana-based wallet hack rampages the Solana ecosystem with millions of dollars drained from users’ wallets.

Magic Eden, an NFT marketplace, advised users to deactivate permissions for any strange URLs in their Phantom wallets because there “seems to be a widespread SOL exploit at play.”

Up to $8 million in cash have already been lost as a result of an ongoing, global attack that rampages across several hot wallets in Solana.

As of this writing, Solana (SOL) is trending on Twitter as a result of numerous people commenting on the hack as it rampages the ecosystem or claiming to have lost money themselves. Users are advising anyone using Solana-based hot wallets, such as Phantom and Slope wallets, to transfer their money into cold wallets.

According to blockchain researcher PeckShield, the widespread theft is most likely the result of a “supply chain flaw” that has been exploited to steal user private keys from affected wallets on August 2. The reported loss is currently believed to be roughly $8 million.

#PeckShieldAlert The widespread hack on Solana wallets is likely due to the supply chain issue exploited to steal/uncover user private keys behind affects wallets. So far, the loss is estimated to be $8M, excluding one illiquid shitcoin (only has 30 holds & maybe misvalued $570M) pic.twitter.com/aTGNsTc6d8

— PeckShieldAlert (@PeckShieldAlert) August 3, 2022

The non-fungible token (NFT) marketplace Magic Eden, as well as wallet providers Phantom and Slope with Solana offices, have all commented on the problem. Phantom, a wallet provider, says it is collaborating with other teams to solve the problem but does not “believe this is a Phantom-specific issue” at this time.

Magic Eden urged users to withdraw permissions for any strange connections in their Phantom wallets as it corroborated the prior claims, saying that “looks to be a widespread SOL exploit at play that’s depleting wallets throughout the ecosystem.”

Although there have been “no substantial breakthroughs yet,” Slope claimed that it is actively collaborating with Solana Labs and other Solana-based protocols to identify the problem and fix the Solana-based wallet hack.

As much as $6 million in assets were allegedly stolen from Phantom wallets on August 2 within the course of ten minutes, according to Twitter user @nftpeasant. One Phantom wallet user’s account may have had USDC worth $500,000 siphoned from it.

Popular fraud investigator @zachxbt, who calls themselves a “on-chain sleuth,” conducted some investigating as well and revealed to their 274,800 followers that the hackers initially funded the main wallet connected to this attack via Binance seven months ago.

According to Emin Gun Sirer, the CEO and founder of Ava Labs, there are currently over 7,000 wallets, and that figure is growing at a rate of over 20 each minute. According to him, it is likely that the attacker has obtained access to private keys because the transactions appear to be correctly signed.

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