Take a look at how the Solana-based wallet hack witnessed millions being drained

by | Sep 10, 2022 | Market, Market News, News, Solana | 0 comments

With the introduction of the new digital currency system, came new changes of which most people were unaware. Slowly and steadily it was accepted by the market and people started investing in it. However, with the emergence of these online platforms came certain pros and cons that need to be taken into consideration. There are also various positive aspects as well as negative aspects to it.

One such negative aspect that brunt has been felt recently was the possibility of these systems getting hacked. The advancement of technology has brought with it certain boons and banes. It has empowered society as well as made it all more vulnerable now.

Learn about the negative aspects of digital currency

Recently, a hack on the Solana-based wallets took the whole market by storm. It was most devastating because this hack witnessed the loss of almost as much as 8 million dollars in funds. After the back was done and the news appeared on Twitter, various comments and discussions followed it on Twitter.

There were mostly two groups who were reporting about the back. One group was reporting on the back as it was in process hole the other group was reporting the loss of people’s funds or were being reported by those who themselves had lost the funds. Those who had to suffer the loss even warned others of transferring their money into Cold wallets as a precautionary measure. It was to keep their account or tokens safe. 

After a thorough study into the hack, it was reported that the hack had some connection with the Slope mobile wallet applications. However, no evidence was found whether the Solana cryptography was ever compromised, despite thorough research into the matter.

More about the blockchain system

As per the reports, it was suggested that the hack that occurred all over was due to a supply chain issue. It is said that this chain is exploited to get to the user’s private keys just behind the affected wallets. The report, which was published by the blockchain investigators further stated that the losses incurred after the hack were about 8 million dollars.

Those systems that are closely related to Solana, that is, are working together with Solana also published their statements shortly after the hack was conducted. Even though the wallet providers said that investigations are being done to get to the bottom of the issue, they have however denied taking any accountability for it as they said it is not something that concerns the wallet providers.

Others such as Magic Eden had also confirmed that the hack that was done seemed like the task of an SOL exploit which occurred all over and which responsible for the draining up of wallets. Other teams such as that Slope are also working on the issue with Solana and all its protocols to shed further light on the issue and reach a conclusion.

Conclusion 

Several other investigations were conducted by well-known NFT investigators which brought to light several other facts. One such fact was that the hackers had previously been funding the wallets through Binance. This was done almost seven months before the hack was conducted. Further investigation into the matter has also exposed that the wallets remained dormant from then till now. They came out of their dormant state when the hackers started doing transactions using four different wallets.

All of this was done by the hackers almost ten minutes before the attack occurred on a large scale. Various other reports have also suggested the kind of damage that various other wallets have suffered and what are they.