Developers uncover vulnerability tied to multi-million Solana hack

Developers uncover vulnerability tied to multi-million Solana hack

important aspect

  • A hack resulted in thousands of Solana Hot Wallet funds being drained
  • This incident happened on Tuesday
  • SOL is trading up 1.24% at $39.05

Solana developers have discovered the culprit behind the multi-million hack that began on Tuesday, and so far, they’re blaming the Slope Finance mobile wallet app.

Solana (SOL), the public blockchain with smart contract functionality, made headlines on Tuesday after trending on Twitter. Multiple users reported losing their funds while others posted the hack as it happened. Others advised customers of Solana-based wallets to move their funds immediately.

The hack drained about 8,000 Solana-based hot wallets of funds, amounting to about $4.5 million between Tuesday and Wednesday morning. Experts immediately examined the blockchain’s protocol and cryptography to see if they had been compromised, but initial assessments by developers point to the Slope Finance mobile wallet app.

Slope Wallet - Solana Ecosystem's Best Mobile Gateway 2-32 Screenshots Slope Finance is the first dedicated mobile decentralized exchange and wallet in Solana with a promise of excellence in delivering the services our users have come to expect from us. Image: YouTube Screenshot/Slope Finance Official YouTube Channel

As the dust settled, important details about the source of the absorption were revealed, proving the initial assessment correct. Solana released an official statement on its Twitter account Wednesday afternoon, containing preliminary findings from security auditors and developers and noting that the addresses affected by the hack “were created, imported or used in Slope mobile wallet applications at some point.”

Later that day, Shields released an officer statement About the massive hack, revealing that “a group of Slope wallets were compromised in the breach.” According to the Web3 wallet provider, there are “some speculations about the nature of the breach, but nothing concrete yet.”

Slope also provided an update on the steps it is taking to protect the interests of its users, including “proactively conducting internal investigations and audits, working with top external security and audit groups” and “working with developers, security experts and all protocols.” Ecosystems will work to identify and correct.”

The team advised users to “create a new and unique seed phrase wallet and transfer all assets to this new wallet.” Slope has discouraged users from using the same seed phrase in newly created wallets.

Getting hacked is a sad and devastating experience, but the only thing worth noting about this latest mayhem is that it wasn’t a seed generation issue or that the blockchain wasn’t compromised. If that were to happen, the hack would have a catastrophic impact on not only Solana, but the entire cryptocurrency ecosystem.

At 2:57 am ET Thursday, SOL was trading up 1.24% at $39.05 with a 24-hour volume of $1,694,909,735, according to the latest data from CoinMarketCap.

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