Cryptocurrency News

Solana users ‘stunned’ after losing life time savings to crypto attack

The Solana blockchain appears to be the victim of the latest crypto theft with thousands of users reporting their funds being drained without their knowledge.  

“Till yesterday, everything was ordinary. I even used Phantom (Solana-based crypto wallet) for making a transaction last night,” Wade Green, a Solana community member who lost more than $10,000 in crypto told indianexpress.com that he is “stunned”, after losing his life savings. The Solana blockchain appears to be the victim of the latest crypto theft with thousands of users reporting their funds being drained without their knowledge.

Data from Blockchain auditor firm OtterSec reveals that the attackers have managed to siphon off more than $5 million so far. Solana is a blockchain that works on the Proof-of-Stake (PoS) algorithm and is widely regarded as an eco-friendly token. The company claims that a single transaction on its network consumes less energy than two Google searches and 24 times less energy than charging your phone.

The attack has affected popular hot Solana wallets including Phantom, Slope and TrustWallet. A hot wallet can be operated on mobile and web. It allows users to store, send, and receive tokens.

Another Solana community member Justin Barlow said that he was a victim of the Solana exploit. “I have never interacted with my wallets in the last 40 days. However, this morning both of my Slope and Trust wallets have been drained.”

According to Solana, an exploit allowed a malicious actor to drain funds from 7,767 wallets on Solana. The hack appears to have affected both mobile and extension. “Engineers from multiple ecosystems, with the help of several security firms, are investigating drained wallets on Solana. There is no evidence hardware wallets are impacted,” Solana said in an official statement.

Meanwhile, OtterSec developers said Solana addresses have lost tokens such as Solana, Smooth love potion, and other Solana-based tokens from users.

The exact cause of Tuesday evening’s attack remained unclear throughout Tuesday night, though it appears to have predominantly impacted mobile wallet users. “We are working closely with other teams to get to the bottom of a reported vulnerability in the Solana ecosystem,” the Phantom wallet team said in a statement.

Meanwhile, Solana has been experiencing multiple outages since May. Applications built on Solana’s blockchain were also taken offline multiple times.

Source:indianexpress.com

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