SwissBorg, a Switzerland-based crypto wealth management platform, confirmed hackers stole over $40 million in Solana after exploiting a vulnerability in its staking partner Kiln’s API. The attack drained around 193,000 SOL tokens, worth $41 million at the time of writing.
The attack was on Kiln, a staking infrastructure company that supports yield products on blockchains such as Solana and Ethereum. Hackers have broken the API of Kiln, the interface that links the app of SwissBorg to the staking network of Solana.
Attackers could use API requests to siphon funds directly out of the Solana Earn program at SwissBorg. Importantly, SwissBorg said its app and other Earn products such as BTC and ETH staking were not affected. The company also assured users that its financial health remains strong and that only about 1% of its customer base was impacted.
SwissBorg Promises Reimbursement
CEO Cyrus Fazel called it “a bad day but not a fatal blow.” Speaking in an X Space, he confirmed the hack only affected Solana deposits and pledged full reimbursement for impacted users. “With the current treasury we have, we could already do that,” Fazel said.
SwissBorg added it is working with exchanges, international agencies, and white-hat hackers to track the stolen funds. Some transactions have already been blocked. Blockchain data shows the stolen tokens were moved to a wallet now labeled “SwissBorg Exploiter” on Solscan.
Despite the setback, Fazel emphasized the incident would serve as a learning experience, strengthening SwissBorg’s security going forward.
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