Thousands of crypto accounts linked to the Solana blockchain have been “leaked” in a blow to one of the largest networks in the digital asset market.
Solana and several other blockchain-related platforms were investigating Wednesday morning’s exploitation of a loophole that affected at least 7,767 digital wallets, the computer programs that store traders’ crypto tokens, according to one of Solana’s Twitter accounts.
The exploit marks a setback for Solana, which is widely regarded as one of the most promising blockchains in the crypto industry. The digital ledger has been touted as one of the potential long-term winners of the crypto industry because it is designed to process thousands of transactions per second.
“Engineers from multiple ecosystems, with the help of several security firms, are investigating the drained Solana wallets,” the group said on Twitter.
He said wallets that allow traders to hold their coins offline rather than using online applications appear to have been unaffected.
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Phantom, a wallet app built on Solana, and the Solana Magic Eden non-fungible token marketplace were among the vendors that said they were affected by the apparent hacking incident.
Solana Labs, developer of the Solana blockchain, is backed by major groups in traditional and cryptocurrency markets, including venture capital firm Andreessen Horowitz, high-speed trading shop Jump Trading and Sam Bankman-Fried’s Alameda Research.
Engineers from multiple ecosystems, with the help of several security firms, are investigating drained Solana wallets. There is no evidence that hardware wallets are affected.
This thread will be updated as new information becomes available.
— Solana Status (@SolanaStatus) August 3, 2022
Solana is designed to process up to 50,000 trades per second, a scale far exceeding competitors including Bitcoin and Ethereum, and on par with established traditional financial services such as the Nasdaq stock exchange. Bank of America analysts said in January that Solana “could become the Visa of the digital asset ecosystem.”
However, Solana has been plagued by processing problems that have tarnished its reputation. Solana’s entire grid went dark for four hours in June, an outage that was documented on the official grid status website.
The blockchain’s eponymous native coin has tumbled nearly 80% so far this year, steeper than the declines suffered by its larger rivals bitcoin and ether.
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