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HomeCrypto NewsMarketScalability, Speed Or Security? Nearly 8000 Wallets Drained In Solana Ecosystem Exploit

Scalability, Speed Or Security? Nearly 8000 Wallets Drained In Solana Ecosystem Exploit

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Do we need more Scalability, Speed rather than Security as the Solana Ecosystem is under attack again?



In a tweet earlier today, Magic Eden confirmed that there is an exploit draining wallets on the Solana ecosystem. At the time of writing, data from Dune shows that over 7,700 addresses have been affected, as pundits estimate that at least $5 million in crypto assets have been lost.

While the vulnerability causing the exploit remains unknown, Binance’s Changpeng Zhao and other pundits have confirmed that the exploit does not seem to be affecting cold wallets or central exchanges. Users have been advised that disabling permissions granted to suspicious links in their wallets may not be enough and have been instead encouraged to move their assets to cold wallets or central exchanges.

The information available shows that the attackers have somehow managed to gain access to the seed phrases of users. At the time of writing, the most popular theory is one suggested by Ava Labs CEO Emin Gün Sirer. According to Sirer, the exploit is likely a supply chain attack, as he suggests a JavaScript library may have been compromised.

Meanwhile, Adam Cochran reports that most victims appear to be IOS users, with most of their wallet interactions on mobile. Phantom and Slope wallets’ users also appear to be the most affected.

While there have been reports of a similar issue on Ethereum, these are very few, and it only appears to be the case when seed phrases are shared with Slope.

On-chain sleuth CIA Officer reports that the amount of stolen SOL per minute appears to be slowing down from 1K SOL per minute to less than 1 SOL per minute. Notably, not only SOL has been drained from the affected wallets but also stablecoins like USDC and USDT and assets like Bitcoin and Ethereum.

Notably, a network validator has launched a DDOS attack on the network in an attempt to slow down the attacker.

Solana Status reports that engineers are currently working together to get to the root cause of the exploit as the community awaits further updates.

Solana, in recent years, has grown to become one of the most popular altcoins, sometimes even dubbed an “Ethereum killer.” However, in recent months, the network has been plagued by several outages and slowdowns. Consequently, it has attracted mockery from the likes of Cardano chief Charles Hoskinson.

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Mark Brennan
Mark Brennanhttps://thecryptobasic.com/
Mark Brennan has been active in the cryptocurrency sector since 2014. His love and passion for the nascent industry drove him to develop interest in writing about important developments and updates about cryptocurrencies and blockchain. Brennan, who holds a Masters degree in Business Administration, learned about the potential of blockchain technology. Aside from crypto journalism, Brennan runs an education center, where he educates people about the asset class.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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