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Hackers Attack Cryptocurrency Solana, Steal Millions of Dollars


Solana cryptocurrency platform logo.

Jakub Porzycki | NurPhoto via | beautiful pictures

Nearly 8,000 digital wallets were withdrawn just over $5.2 million in digital currency including solanasol token of and Money USD (USDC), according to blockchain analytics firm Elliptic. Twitter account Solana Status confirmed the attack, noting that as of Wednesday morning, about 7,767 wallets had been affected by the exploit. Elliptic’s estimate is slightly higher with 7,936 wallets.

SolanaSol’s token, one of the largest cryptocurrencies after bitcoin and ether, fell about 8% in the first two hours after the hack was initially discovered, according to data from CoinMarketCap. It is currently down about 1%, while trading volume increased by about 105% in the last 24 hours.

Starting Tuesday night, many users began reporting that assets held in “hot” wallets – i.e. internet-connected addresses, including Phantom, Slope, and Trust Wallet – had run out of funds. .

Phantom mentioned above Twitter that it is investigating a “reported vulnerability in the solana ecosystem” and does not believe it is a Phantom-specific issue. Blockchain audit firm OtterSec tweeted that The attack affected multiple wallets “on multiple platforms.”

Elliptic chief scientist Tom Robinson told CNBC that the root cause of the breach is still unclear, but “it appears to be due to a vulnerability in certain wallet software, not in the solana blockchain itself. ” OtterSec added that the transactions were signed by the real owners, “suggesting some sort of private key compromise.” A private key is a secure code that grants owners access to their crypto assets.

The identity of the attacker, as well as the root cause of the exploit, is still unknown. Violation is in progress.

“Engineers from multiple ecosystems, with the help of several security companies, are investigating depleted wallets on solana,” according to Solana Statusa Twitter account that shares updates to the entire solana network.

The solana network is strongly encouraging users to use hardware wallets, as there is no evidence that they are affected.

“Do not reuse your seed phrase on hardware wallets – create a new seed phrase. Drained wallets must be considered compromised and abandoned” read a tweet. The seed phrase is a set of random words generated by the crypto wallet when it is first set up and it grants access to the wallet.

The private key is unique and associates the user with their blockchain address. The seed phrase is the fingerprint of all the user’s blockchain assets to be used as a backup if the crypto wallet is lost.

The incident occurred one day after The $200 million hack of the Nomad . blockchain bridge. This is the latest crisis to affect the crypto market in recent weeks.

“The four addresses currently involved in hackers, are a far cry from yesterday’s ‘decentralized looting operation’, which involved more than 120 individual users,” Deutscher said. This implies that it was a single party that conducted the SOL mining, although the specifics are still vague.”

The Solana network is considered one of the most promising newcomers in the crypto market, with backers like Chamath Palihapitiya and Andreessen Horowitz touting it as an ethereum challenger with faster transaction processing times. and enhanced security. But it has been facing a lot of issues lately, including downtime during active periods and the perception of being more centralized than ethereum. A major outage in June took the Solana platform offline for several hours.

Etherthe native token of the ethereum blockchain, has grown by 6% in 24 hours.





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