SwissBorg Faces $41 Million Loss in SOL Due to API Compromise

By: Isha Das

In a major security breach, Swiss crypto wealth management platform SwissBorg is reported to have suffered a staggering loss of $41 million in Solana (SOL) tokens. The incident was triggered by a compromise in the API of its staking partner, Kiln, affecting SwissBorg's Solana Earn program. This breach resulted in the unauthorized siphoning off of approximately 193,000 SOL tokens, impacting roughly 1% of SwissBorg users and representing about 2% of the company’s assets under management (AUM).

CEO of SwissBorg, Cyrus Fazel, confirmed the breach during a recent broadcast, emphasizing that the core application of SwissBorg remains secure. The platform has taken immediate actions to compensate affected users, allocating treasury funds to cover the losses. Fazel assured stakeholders that SwissBorg has enough resources to reimburse users fully and is collaborating with white-hat hackers and blockchain security firms to recover the stolen assets. Exchanges have also blocked transactions linked to the hack, preventing any further liquidation of the stolen funds.

The compromise originated from Kiln, a noted staking infrastructure provider that supports yield-generating products on various blockchains, including Solana and Ethereum. Despite rigorous due diligence, external vulnerabilities exposed the platform to sophisticated attacks. This incident exclusively targeted the Solana Earn strategy, leaving other staking and platform funds intact. SwissBorg aims to strengthen its security posture by implementing additional measures and will work with law enforcement agencies globally to prevent future occurrences.

Fazel remarked on the sturdiness of the platform's financial health despite the breach and looked forward to enhancing their security partnerships. He proposed regular updates to ensure transparent communication regarding the retrieval of lost funds. Acknowledging the emotional and financial impact on users, Fazel highlighted this as a significant learning curve and expressed confidence in building a more robust, secure environment for their community.