With Solana hitting the headlines for succumbing to some hack on Wednesday, prominent crypto CEOs — including Binance’s Changpeng “CZ” Zhao, KuCoin’s Johnny Lyu and OKX’s Jay Hao — suggested that Solana (SOL) investors move their holdings over to their personal exchanges being an immediate security measure.
Numerous blockchain investigators and crypto investors flagged an alleged prevalent private key compromise, allowing the attacker to steal native SOL tokens and Solana-compatible SPL tokens for example USD Gold coin (USDC) from Phantom and Slope wallets. However, the main reason for the attack remains a mysterious as both sides, including Solana and Phantom, denied problems in their ends. Phantom’s official stance around the matter distributed to Cointelegraph:
“We will work carefully along with other teams to get at the foot of a reported vulnerability within the Solana ecosystem. At the moment, they doesn’t believe this can be a Phantom-specific issue.”
Parallel towards the ongoing investigations from the Solana fiasco, CZ cautioned investors of “an active security incident on Solana” that drained funds in SOL and USD Gold coin (USDC) off over 7000 wallets. His recommendation to unhacked investors ended up being to transfer their assets to some cold wallet or Binance.
There’s an energetic security incident on Solana. Many (7000+ and counting) wallets are drained of SOL & USDC. Have no idea real cause yet. Maybe permissions granted to apps. For removal, send the funds to some cold wallet or CEX like @Binance. https://t.co/nQrBXAgCbf
— CZ Binance (@cz_binance) August 3, 2022
Lyu gave an identical assurance to KuCoin users because he confirmed that SOL assets weren’t influenced by the hack because he stated:
“We’re in close connection with the Solana team and also have blocked the suspicious addresses as requested.”
Hao, however, echoed CZ’s recommendation because he advised investors to maneuver their assets to OKX to safeguard themselves in the hack.
You will find reports that the massive #Solana hack has greater than 7,500 hot wallets drained.
It may be better to move your funds to some hardware wallet, or perhaps a reliable exchange like #OKX to safeguard yourself out of this hack.
Stay safe available.
— jay_star.okx ⚛️ OKX Chief executive officer (@star_okx) August 3, 2022
Because of the uncertainty behind the hacker’s potential and achieve, other crypto exchanges for example Bybit have proactively suspended all deposits and withdrawal of assets around the Solana blockchain.
Related: Hacker drains $1.08M from Audius following passing of malicious proposal
A hack that passed a malicious governance proposal led to the change in tokens worth $6.a million, using the hacker making away with $a million.
Hello everybody – we understands reports of the unauthorized change in AUDIO tokens in the community treasury. We’re positively investigating and can report on their behavior when we all know more.
If you want to help our response team, please achieve out.
— Audius (@AudiusProject) This summer 24, 2022
Talking with Cointelegraph, Audius co-founder and Chief executive officer Roneil Rumburg clarified that no people from the community were active in the passing from the malicious proposal:
“This was an exploit — not really a proposal suggested or undergone any legitimate means — it simply became of make use of the governance system because the access point for that attack.”
Blockchain investigator Peckshield later narrowed lower the fault to Audius’ storage layout inconsistencies.
