SwissBorg's Assurance after SOL Breach
- SwissBorg reassures users after $41M SOL breach.
- Compensation from treasury promised swiftly.
- Solana affected, no core app losses observed.
SwissBorg’s Solana Earn program experienced a $41 million hack facilitated by Kiln’s compromised API, affecting 1% of users and 2% of assets, as CEO Cyrus Fazel addressed the breach.
The incident underscores vulnerabilities in third-party partnerships, prompting SwissBorg to bolster security measures while compensating affected users, resulting in stabilized market sentiment.
The SwissBorg Solana Earn program faced a security breach resulting in 193,000 SOL lost, a value of approximately $41 million. The breach was attributed to a vulnerability in third-party staking provider Kiln’s API.
Following the theft, Cyrus Fazel, SwissBorg’s CEO, declared that treasury funds would be allocated to cover user losses. “We will allocate treasury funds to compensate affected users, prioritize transparency, and provide live updates as we enhance security protocols to prevent future risks,” he stated. The breach involved a minor segment of SwissBorg’s total assets and users.
The breach chiefly impacted around 1% of user base, totaling 2% of assets under SwissBorg’s management. Kiln’s API vulnerability was the entry point for the attack, and not SwissBorg’s app.
SwissBorg has ensured that core operations, including user balances outside the Solana Earn program, remain unaffected. The decision to use SwissBorg’s treasury to compensate reflects their financial resilience.
Financial impact appears limited as other assets like BTC and ETH remain unscathed. Operations under Swiss jurisdictional compliance continue.
SwissBorg collaborates with white-hat hackers and promises to refine security across DeFi staking partners. Historical breaches, such as the Badger DAO incident, highlight the risks from third-party integrations.
