Slope Wallet Largely Responsible For Solana’s Hack

    As reported, Solana suffered a multi-million dollar hack on Aug 3, causing 8,000 crypto wallets to be compromised. Since the hacker did not attack smart contracts of any project, the exploit is believed to be due to software in certain wallets, including Phantom, Slope, and TrustWallet.

    After collecting information from affected users to identify the cause, Solana claimed its exploit is likely tied to Slope mobile wallet.

    “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.

    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 under investigation, but private key information was inadvertently transmitted to an application monitoring service. There is no evidence the Solana protocol or its cryptography was compromised.”

    A representative of Slope Wallet also commented on what happened, admitting that a group of Slope wallet users were affected in the attack and they are likely the source of the incident. Slope also advises users to create a new wallet and transfer assets there, don’t use the old wallet or seed phrase.

    Many crypto users tried to trace the attack and discovered that Slope had inadvertently sent seed phrases to external partners. It could be related to Sentry, a third-party event logging platform connected to Slope that logs keyword mnemonics from the user’s wallets and then sends them to the server of Solana wallets, thus being revealed to hackers.

    Compared to the $190 million Nomad cross-chain bridge attack, Solana still suffered little damage. The SOL price, though, has yet to show any signs of recovering because of rumors that the vulnerability could spread to the entire network.

    At the beginning of June, Solana also experienced a major outage, which lasted for more than 4 hours. That was the 4th time Solana crashed in 2022 alone.

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