Solv Protocol Hit With $2.7M Exploit, Offers 10% Bounty for Recovery

Solv Protocol, a Bitcoin-based decentralized finance platform, reported today that it encountered a security issue. Hackers exploited a vulnerability in a Bitcoin Reserve Offering (BRO) vault, stealing 38.0474 SolvBTC, valued at approximately $2.7 million based on current prices. 

Thankfully, the breach affected fewer than 10 users, while all other vaults and the majority of funds remained secure. The team has promptly engaged leading security firms to conduct an investigation and has committed to fully reimbursing those impacted by the incident.

Technical Details of the Breach

A vulnerability was discovered in the mint function of the BRO-SOLV-20MAY2026 contract. This issue affected the contract’s interaction with ERC-3525 and ERC-721 tokens. An attacker could exploit this vulnerability to trigger an onERC721Received callback during the safe transfer of a complete NFT, enabling them to mint BRO tokens prematurely. 

The minting process resulted in duplicate token issuance, leading to unchecked inflation. The attacker initially began with just 135 BRO tokens and completed 22 burn-and-mint cycles, increasing their balance to over 567 million BRO. They then quickly exchanged these additional tokens for legitimate SolvBTC using the protocol’s swap feature.

Alerts from partners such as Hypernative Labs, SlowMist, and CertiK quickly detected and contained the problem, preventing further damage to Solv’s ecosystem, which manages substantial Bitcoin reserves. The event underscores the ongoing risks associated with smart contracts in the expanding Bitcoin DeFi sector, despite strong support from investors such as Binance Labs.

Solv Protocol Offers a Bounty

Following the breach, Solv Protocol swiftly committed to compensating all impacted users while confirming the security of remaining assets. The protocol has intensified collaboration with its security partners to conduct a thorough root-cause analysis and implement preventive upgrades.

To recover the stolen funds, the team publicly offered a 10% white-hat bounty to the exploiter. They invited the individual to return the funds by sending a direct message or an on-chain message to a specified address. This approach has previously facilitated quicker and easier refunds in similar incidents.

Meanwhile, community responses on social platforms have reflected concerns over short-term token price pressure and reinforced calls for enhanced auditing in Bitcoin yield products. As Solv continues to develop infrastructure for efficient bitcoin capital deployment, this incident underscores the urgent need for robust safeguards in light of the increasing adoption of on-chain BTC financial tools.

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