Nearly 8,000 digital wallets have been drained of just over $5.2 million in digital coins including solana’s sol token and USD Coin, according to blockchain analytics firm Elliptic.
Elliptic chief scientist Tom Robinson told CNBC the root cause of the breach is still unclear, but “it appears to be due to a flaw in certain wallet software, rather than in the solana blockchain itself.” OtterSec added that the transactions were being signed by the actual owners, “suggesting some sort of private key compromise.” A private key is a secure code that grants the owner access to their crypto holdings.
“Engineers from multiple ecosystems, with the help of several security firms, are investigating drained wallets on solana,”The solana network is strongly encouraging users to use hardware wallets, since there’s no evidence those have been impacted. A private key is unique and links a user to their blockchain address. A seed phrase is a fingerprint of all of a user’s blockchain assets that is used as a backup if a crypto wallet is lost.. It’s the latest crisis to grip the crypto market in recent weeks.
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