Solana News Today:

SwissBorg, a Swiss-based cryptocurrency platform, has confirmed a significant security breach involving its Solana (SOL) staking program, resulting in the loss of approximately 193,000 SOL — valued at around $41.5 million. The incident, announced via a video statement on Sept. 8, was attributed to a compromised partner API rather than a direct attack on SwissBorg’s own infrastructure. CEO Cyrus Fazel clarified that the breach originated from a “partner that was unfortunately compromised,” which is described as one of the best in the industry for staking services [1].

The attack primarily affected SwissBorg’s SOL Earn program, a staking strategy offered to users, with no impact on other staking programs or funds within the company’s main application. Fazel emphasized that the company’s financial health remains stable, with the stolen funds representing only 2% of SwissBorg’s total assets under management. To address user concerns, the company has already allocated treasury funds to cover losses, with Fazel asserting that sufficient resources are available for full compensation [1].

In response to the breach, SwissBorg has taken immediate action to recover the stolen assets. The platform has engaged white-hat hackers and security partners to conduct blockchain analysis and collaborate with exchanges to trace the movement of funds across multiple wallet addresses. Several exchanges have already blocked transactions linked to the attack, preventing the liquidation of some stolen funds. Entities such as Fireblocks, the Solana Foundation, and blockchain investigators have been involved in tracking the assets, highlighting a collaborative effort to mitigate the damage [1].

The breach occurred despite what the company describes as rigorous due diligence in partner selection. Fazel acknowledged the incident as a “learning experience,” emphasizing the vulnerability that external partners can introduce even when operating within a secure framework. The CEO also recognized the emotional impact on affected users and promised transparency throughout the recovery process, including regular updates on progress and fund retrieval efforts [1].

Moving forward, SwissBorg has committed to implementing enhanced security measures and collaborating with law enforcement agencies globally to prevent similar incidents in the future. The company remains focused on safeguarding user funds and maintaining trust in the wake of a challenging event. Fazel reiterated the company’s commitment to its community, stating that moments like these reveal who stands by the organization during adversity [1].

Source:

[1] SwissBorg Loses $41M in SOL After Partner API Compromise Affects Earn Program (https://cryptoslate.com/swissborg-loses-41m-in-sol-after-partner-api-compromise-affects-earn-program/)

[2] SwissBorg Crypto Platform Robbed of Over $40 Million in Solana (https://www.theblock.co/post/369924/swissborg-crypto-platform-robbed-of-over-40-million-in-solana?utm_medium=rss&utm_source=companies.xml)