Crypto Wealth manager SwissBorg Hacked; $41 million Lost
On September 8, SwissBorg, a Swiss cryptocurrency wealth management platform, fell victim to a hacking incident resulting in a significant $41 million loss.
Attackers exploited a vulnerability in Kiln’s API—a partner of SwissBorg—the root cause behind the breach.Specifically,the hacker targeted the platform’s Solana (SOL) Earn program,draining about 192,600 SOL tokens. These tokens were promptly transferred to a newly created wallet, now identified as ‘SwissBorg Exploiter’ on Solscan.
The company swiftly acknowledged the breach via an X post, emphasizing that only 1% of its users were impacted. to reassure users,SwissBorg confirmed that core systems and other services remained unaffected. Moreover,the company’s treasury funds will cover the losses.
This incident underscores the escalating threat posed by API vulnerabilities within the decentralized finance (DeFi) ecosystem. It serves as a stark reminder for platforms to bolster their security measures.
- SwissBorg lost approximately $41 million due to exploitations on September 8.
- Only a small fraction of users, 1%, faced issues during this ordeal.
- The company will compensate affected users using its treasury funds.
The incident with SOL Earn highlights the necessity for improved API security across the crypto industry.
