Solana wallets ’emptied’ of blow to crypto network

Thousands of crypto accounts linked to the Solana blockchain have been “emptied” in a blow to one of the largest networks in the digital asset market.

Solana and several other blockchain-related platforms were investigating an apparent hack on Wednesday that affected at least 7,767 digital wallets, the computer programs that store merchants’ crypto tokens.

The Solana Foundation, a non-profit organization focused on the growth and security of the Solana network, told the Financial Times that it “does not appear” that the exploit affected its core infrastructure, but did. rather, was caused by a bug “in the software used by several popular wallets among Solana users”.

The apparent hack marks another setback for Solana, which has been touted as one of the crypto industry’s potential long-term winners because it was designed to handle thousands of transactions per second, but has faced to a series of outages in recent months.

The Solana Foundation said Wednesday that “engineers from multiple ecosystems, with the help of multiple security companies, are investigating depleted wallets on Solana.” In many recent episodes of crypto hacks, users have not recovered their funds because transactions generally cannot be undone on blockchains.

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Phantom, a Solana-based wallet app, and Solana’s non-fungible token marketplace Magic Eden were among the vendors who said they were affected by the apparent hacking incident.

The Solana Foundation said wallets that allow traders to hold their coins offline rather than using online apps don’t appear to have been affected.

Solana Labs, a developer of the Solana blockchain, is backed by major groups in the traditional and cryptocurrency markets, including venture capital firm Andreessen Horowitz, high-speed trading boutique Jump Trading, and Alameda Research. Sam Bankman-Fried.

Solana is designed to process up to 50,000 transactions per second, a scale well above that of rivals including Bitcoin and Ethereum, and on par with established mainstream financial services such as the Nasdaq exchange. In January, analysts at Bank of America said Solana “could become the visa for the digital asset ecosystem.”

However, Solana suffered treatment issues that tarnished her reputation. The entire Solana network went down for four hours in June, an outage that was documented on the network’s official status website.

The eponymous native blockchain coin has fallen nearly 80% this year, more than the declines suffered by its biggest rivals bitcoin and ether.

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