Thousands of cryptocurrency accounts linked to the Solana blockchain have been “drained” in a blow to one of the largest networks in the digital asset market.
Solana and several other blockchain platforms were investigating an exploitation of vulnerabilities in its system Wednesday morning that affected at least 7,767 digital wallets, the computer programs that store traders’ cryptocurrency tokens, according to one of Solana’s Twitter accounts.
The exploit marks a setback for Solana, which is widely regarded as one of the most promising blockchains in the cryptocurrency industry. The digital book has been touted as one of the potential long-term winners of the cryptocurrency industry as it was designed to handle thousands of transactions per second.
“Engineers from multiple ecosystems, assisted by multiple security firms, are investigating depleted Solana wallets,” the group said on Twitter.
Wallets that allow traders to store coins offline instead of using online apps are said to have been unaffected.
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Phantom, a Solana-powered wallet app, and Magic Eden, Solana’s non-fungible token marketplace, were among the providers that said they were affected by the apparent hacking incident.
Solana Labs, the developer of the Solana blockchain, is backed by major groups in the traditional and crypto markets, including venture capital firm Andreessen Horowitz, flash store Jump Trading and Sam Bankman-Fried’s Alameda Research.
Engineers from several ecosystems, with the help of several security firms, are investigating Solana’s depleted wallets. There is no evidence that hardware wallets are affected.
This topic will be updated as new information becomes available.
— Solana Status (@SolanaStatus) in 2022 August 3
Solana is designed to process up to 50,000 transactions per second, which far exceeds competitors including bitcoin and ethereum and is on par with established traditional financial services such as the Nasdaq stock exchange. In January, analysts at Bank of America said Solana “could become the visa of the digital asset ecosystem.”
But Solana faced processing glitches that tarnished her reputation. The entire Solana network in June. blacked out for four hours, which was an interruption documented on the official network status website.
Blockchain’s eponymous local coin has dropped almost 80 percent so far this year, larger than the declines experienced by larger rivals bitcoin and ether.