Crypto Platform SwissBorg Loses $41.5M SOL in Massive Hack

SwissBorg, a well-known cryptocurrency platform in Switzerland, recently experienced a serious security breach that alarmed its users. Hackers stole 193,000 SOL tokens, worth about $41.5 million, from the platform’s SOL Earn program, which works on the Solana blockchain.

This incident highlights significant weaknesses in the platform’s connection with third-party services, particularly the API provider, Kiln, as noted by on-chain investigator ZachXBT.

Hackers Try an Old Tactic Again

The attackers exploited a loophole in the Kiln API, resulting in an attack that compromised the infrastructure supporting the SOL Earn program. Although the Solana blockchain itself was not harmed, the shocking incident has sparked concerns among many users, resulting in some experiencing significant losses.

This event highlights the ongoing risks associated with centralized systems in a space that is meant to be decentralized. It reflects a broader issue that many platforms in the crypto industry are facing. The incident mirrors a similar attack that occurred earlier today, targeting the Nemo Protocol—a platform operating on the Sui Network—which resulted in a loss of $2.4 million worth of USDC stablecoins.

SwissBorg Rolls Out Recovery Plan

Following the incident, SwissBorg has taken to its X handle to reassure users that its mobile app and Earn programs are safe and unaffected by the breach. To help customers who lost money, the platform has pledged to use funds from its asset treasury to cover most of the losses.

SwissBorg is also collaborating with ethical hackers, also known as white-hat hackers, and security partners to track and recover the stolen SOL tokens using advanced blockchain forensics. The platform is also planning a live session on YouTube to discuss the recent incident, where it will explain what happened, share its recovery plans, and address questions from concerned users. The platform believes that a swift response will help calm users.

Meanwhile, the tales of woe seem never-ending, as on-chain investigator ZachXBT reported a while ago that Aquabot_io, a trading bot project on Solana, likely carried out a rug pull. The project took off with 21,770 SOL, worth about $4.65 million, raised during its presale.

Funds from the wallet 4Ea23VxEGAgfbtauQZz11aKNtzHJwb84ppsg3Cz14u6q were split among several addresses before being sent to quick exchanges. The project’s team has turned off replies on all their posts on X, raising concerns about possible fraud. ZachXBT’s research suggests that the presale funds were likely stolen, causing significant losses for investors.