The Solana ecosystem endured a massive hack affecting multiple wallets including Slope, Solflare, Phantom, and TrustWallet. More than 8,000 web-linked hot wallets have been compromised and SPL (USCD) and SOL tokens were stolen. There is an anticipated debate regarding the security of hot wallets. This type of wallet is always online in order to provide convenience for users to allow them to store, send, and receive crypto. 

According to current data, the total amount of this incident is estimated to reach more than $10 million. This is dubbed the “smash and grab” wallet raid where the hacker took everything in an instance. Users were advised to move their assets to a cold wallet or centralized exchange.

Since users’ private keys were compromised during this hack, the Peckshield team, a reliable group of blockchain security experts, considers this breach to be caused by a “supply chain flaw”. The hacker was able to initiate and approve transactions that show a trusted 3rd party has been used in this supply chain cyber attack. 

It is also worth mentioning that the bulk of those targeted accounts has been dormant for a minimum of six months right before being identified. Solana’s fast transaction and low fee features have helped the platform to be well-known in the crypto space. After the exploit, SOL lost 4% in just a few hours and its current rank went down to 9th by market cap.

Solana Daily Chart – The 100 SMA Remains As Resistance

Solana continues to remain bearish on longer-term charts