Multimillion-dollar Solana Crypto Theft Linked to Slope Mobile Wallet
The Solana
Status team updated the public that the wallet addresses affected
by the breach were tied to Slope mobile wallet applications. The team further clarified that "there is no evidence the Solana protocol or its
cryptography was compromised."
Hack Tethered to Slope Mobile Wallet Applications
During the
last 48 hours, the Solana team has been dealing with an attack that
saw thousands of Solana-based wallets hacked. Solana Labs Co-Founder and
CEO Anatoly Yakovenko thought the exploit possibly stemmed from a
supply chain attack. He explained that iOS and Android wallets were affected
when he said: "most of the reports are Slope, but a few Phantom users
as well."
The Solana
Status Twitter account explained on August 3, 2022, that the addresses
affected in the hack were tethered to Slope mobile wallet applications.
"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 Status wrote. "This
exploit was isolated to one wallet on Solana, and hardware wallets used by
Slope remain secure." Solana Status said:
"While
the details of exactly how this occurred are still under investigation, private
key information was inadvertently transmitted to an application monitoring
service. There is no evidence the Solana protocol or its cryptography was
compromised. "
Slope Finance
published an official statement from the wallet team. Slope said, "A cohort of Slope wallets were compromised
in the breach. We have some hypotheses as to the nature of the breach, but
nothing is yet firm, [and] we feel the community’s pain, and we were not
immune. Many of our staff and founders’ wallets were drained. " Slope also
added that the team was actively conducting internal investigations and audits
while working with security and audit groups.
Slope’s Seed Phrases Were Logged in Readable Plain Text
In the
official statement, the Slope team further recommended that Slope wallet users
"create a new and unique seed phrase wallet, and transfer all assets to
this new wallet." Slope added:
"If you
are using a hardware wallet, your keys have not been compromised."
The data from
Dune Analytics has revealed that there were more unique addresses that were affected
by the breach than reported. Statistics show that 9,223 unique
addresses suffered from the bug and USD 4,088,121 in crypto were stolen. Most
of the assets hacked are Solana (SOL) and SOL-based USDC.
It is
said that Slope’s mnemonic seed phrases transferred to Slope’s server were
logged in readable text. The Slope wallet team allegedly stored the mnemonics
in debug logging software via a centralized Sentry server. Security experts at
Ottersec detailed that "anybody with access to Sentry could
access [a] user’s private keys." Ottersec also noted that the Slope team
was "very helpful in sharing data related to the hack."
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