Solana Hack: Slope Issues Official Statement; SBF & CZ Comment on the Exploit

Quick take

• Solana discovers the hack originated with Slope mobile wallets
• Solana protocol and/or its cryptography is not compromised
• Slope have advised users to create a new and unique seed phrase wallet

After a Solana exploit drained about 8000 wallets, the breach was under investigation. Solana’s investigation later revealed that the bug was not in the blockchain’s core but rather in the user’s wallets.

Further probe revealed that there was no evidence that Solana’s protocol or its cryptography had been compromised. 

“After an investigation by developers, ecosystem teams, and security auditors, it appears affected addresses were at one point created, imported, or used in Slope mobile wallet applications,” Solana stated in a tweet. 

The Solana team further added, “This exploit was isolated to one wallet on Solana, and hardware wallets used by Slope remain secure. While the details of exactly how this occurred are still under investigation, but private key information was inadvertently transmitted to an application monitoring service.”

Bankman-Fried and Changpeng Zhao Comment on the Exploit

Meanwhile, FTX CEO Sam Bankman-Fried has commented on the Nomad breach as well as the latest Solana exploit. In his tweet, he highlights how the underlying blockchains are blamed when a dApp gets compromised.

“This is a good example of how something can be under-rated. a random dAPP gets compromised and it's blamed on the underlying blockchain.  (To be clear, no core or internal infra had any issues!  It was just a single third-party application some people used...)” says SBF in his tweet.

On the other hand, Binance CEO CZ has joined the chat and tweeted, “Your keys, in your own wallet, safe, right? Beware of the wallet software. It could have bugs.” 

This was followed by, “Different setup, different risks. Nothing is risk free. Learn about security.”

Slope is Actively Looking Into The Matter

Right after the reports surfaced, Slope issued an official statement regarding the breach. The company stated that the wallets of their staff were drained. Slope is conducting internal audits, and working with security experts, and developers to resolve the issue. 

Meanwhile, Slope has also suggested to its users to create a new wallet and their funds with a new seed phrase. 

“Create a new and unique seed phrase wallet, and transfer all assets to this new wallet. Again, we do not recommend using the same seed phrase on this new wallet that you had on Slope,” Slope’s official statement has advised. 

Further, Slope Finance has also assured its users that hardware wallets were not compromised. A post-mortem report will be made available once the investigations are over. 

As of now, Slope Finance is actively sharing breakthroughs on its official Twitter handle and will answer all questions through the social platform. 

So far, investigations have revealed that the attackers interacted through Binance on 4 wallets. 

For more details, stay tuned to DeRev

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