Crypto wallets bleed red as unscrupulous solana hacking soars. According to blockchain analytics firm Elliptic, slightly over $5.2 million worth of digital currencies such as Solana’s Sol Token and USD Coin (USDC), have been stolen from close to 8,000 digital wallets.
The vulnerability was reported to have compromised around 7,767 wallets as of the morning of Wednesday. This is according to the Twitter account Solana Status, which stated that the assault had been confirmed. According to Elliptic’s estimation, there are a total of 7,936 wallets.
According to statistics provided by CoinMarketCap, Solana’s sol token, which is one of the major cryptocurrencies behind bitcoin and ether, had a decline of around 8 percent in the first two hours after the breach was originally reported. It has gone down by about 1 percent recently. However, the number of trades has gone up by about 105 percent in the last 24 hours.
Multiple users began claiming that assets kept in “hot” wallets, also known as internet-connected addresses such as Phantom, Slope and Trust Wallet, had been emptied of cash beginning Tuesday evening. “Hot” wallets are wallets that are linked to the internet.
Phantom stated on its Twitter account that it is looking into the “reported vulnerability in the Solana ecosystem.” Also, it does not believe that it is a problem that is unique to Phantom. In a tweet, the blockchain auditing company, OtterSec stated that many wallets “across a broad variety of platforms” had been compromised by the breach.
Crypto wallets bleed red as unscrupulous solana hacking soars
According to Tom Robinson, chief scientist for Elliptic, the primary reason for the security vulnerability is still unknown. However, “it looks to be linked to a fault in some wallet software rather than in the Solana blockchain itself.” OtterSec also stated that the transactions were being signed by the legitimate owners. This “suggests some type of private key breach.” The owner of a cryptocurrency can gain access to their assets via a secret code known as a “private key.”
Both the identity of the person who carried out the assault and the underlying problem that led to the vulnerability are now unknown. The security breach is still active.
Engineers from numerous ecosystems are now analyzing drained wallets on the Solana platform. This is done with the assistance of many different security organizations. This was according to the Twitter account Solana Status, which provides updates for the entirety of the Solana network.
People who use the Solana network are strongly encouraged to use hardware wallets. This is because there is no evidence that the recent attack hurt them.
“When using a hardware wallet, do not reuse your seed phrase; instead, generate a fresh seed phrase.” A tweet states that wallets that have been completely depleted “should be viewed as hacked and abandoned.” A seed phrase is a collection of random words that are created by a cryptocurrency wallet. Th is is done while it is being set up for the first time. They are used to enable access to the wallet.
Security Measures
A private key is one of a kind and connects a person to the address they have on a blockchain. A seed phrase can serve as a backup by providing a fingerprint of all of the user’s blockchain assets. This is in the event that a user’s cryptocurrency wallet is lost.
The event happened just one day after the Nomad blockchain bridge was hacked for a total of $200 million. The cryptocurrency market has been hit by yet another crisis in recent days.
According to crypto investor and expert Miles Deutscher, “Four addresses are currently linked to the hacker, which is a far cry from yesterday’s “decentralized looting.” This included over 120 individual individuals.” “This suggests that the SOL exploit was done by a single person, but the details are still unclear.”
The Solana network was considered to be one of the most promising entrants in the cryptocurrency industry. Its sponsors, such as Chamath Palihapitiya and Andreessen Horowitz, promoted it as a competitor to Ethereum with quicker transaction processing times and increased security features.
But as of late, it has been plagued by a number of problems, the most recent of which being periods of inactivity-induced outages and the impression that it is more centralized than Ethereum. In June, there was a major outage that made it impossible to use the Solana platform for several hours.
The price of ether, the native asset of the Ethereum network, has increased by 6% in the last 24 hours.
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The History of the Solana Token
A public blockchain system that is decentralized by its very design and functions in an open-source fashion is what we mean when we talk about Solana. Evidence of history and proof of stake are utilized to facilitate the process of arriving at a consensus. With its own coin, which it refers to as SOL, Solana is able to control peer-to-peer transactions and guarantees 50,000 TPS.
The Solana blockchain was made to be “censorship-resistant” by its creators. It also supports smart contracts and tokens that can’t be exchanged for cash.
Anatoly Yakovenko laid the groundwork for the establishment of Solana in the year 2017. Yakovenko is the author of a white paper titled “Proof of History,” which discusses the notion of a timekeeping approach in relation to distributed systems (PoH). Proof of History can help solve both the problem of scaling and the problem of how long it takes to get everyone to agree on transaction orders.
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Yankovenko thought that this new method might just automate the process of putting transactions in the right order on the blockchain. This would add a key piece that would make it possible for cryptocurrency networks to grow beyond their current limits.