Is Solana Initiating Recovery Plan After Major Hack?

The global digital asset industry woke to another hacking incident in just two days. This time Solana (SOL) network came on the radar of the hackers. SOL prices have dropped by over 5% since the news broke out.

Over 7.5k Solana based wallets affected

As per reports, around $8 million have been removed from more than 7500 Solana based wallets. The list of hacked wallets includes names like Phantom, Slope, and TrustWallet. This incident has made Solana the latest target of the crypto hack.

However, Solana’s team has launched a survey for the 7,767 impacted wallets. It added that their engineers are still investigating the root cause.

Earlier, it mentioned that engineers across multiple ecosystems are investigating drained wallets with the help of several security firms. It highlighted that there is no such evidence that hardware wallets are affected by this incident.

According to Solana, the exploit has impacted Slope and Phantom wallets on both mobile and extensions. Later, it asserted that users can be encouraged to use hardware wallets. However, it added that users don’t need to use their seed phrase on the hardware wallet. While the drained wallets should be classified as compromised and abandoned.

Will this affect SOL’s price?

In the meantime, Solana prices have dropped by more than 5% in the last 24 hours. SOL is trading at an average price of $38.49, at the press time. Its 24 hours trading volume has surged by over 75% to stand at $1.91 billion.

Foobar, Defi expert informed that Solana Private key has been compromised. The attackers stole both Solana (SOL) and SPL tokens (USDC). It added that this has affected wallets that have been inactive for more than 6 months. While both Phantom and slope wallets have drained in the incident.

Meanwhile, this attack has started a long running discussion over the security and usability of hot wallets.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

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