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SwissBorg Solana hack $41M API breach
NFT Gaming

SwissBorg loses $41M in Solana following API-related hack

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SwissBorg, a Swiss crypto wealth management platform, suffered a $41 million hack on Sept. 8 after attackers exploited a vulnerability in a partner’s API.

Summary

  • SwissBorg lost $41M in SOL after a September 8 hack exploiting partner Kiln’s API.
  • Only 1% of users were affected, with treasury funds covering losses.
  • The incident highlights rising risks from API vulnerabilities in DeFi.

The company confirmed the breach in an X post on the same day, assuring users that core systems and other services remained unaffected.

API flaw linked to Kiln partner

The exploit stemmed from SwissBorg’s integration with staking provider Kiln. Hackers manipulated the API connection the Solana (SOL) Earn program used, siphoning off about 192,600 SOL tokens. The tokens, valued at between $41 million and $41.5 million, were moved to a new wallet that is now flagged as the ‘SwissBorg Exploiter’ on Solscan.

The stolen funds represent almost half of SwissBorg’s total Solana reserves of $72.6 million. Despite the size of the loss, the company stressed that only around 1% of users were directly affected, with no impact on other Earn products or the SwissBorg app.

SwissBorg’s recovery plan

SwissBorg outlined its immediate actions to protect users in its public statement. The company has allocated assets from its own Solana treasury to cover the majority of user losses, with final compensation amounts still being determined. Chief executive officer Cyrus Fazel described the incident as “a bad day, but not a fatal one,” highlighting the firm’s financial stability.

To track down the stolen assets, SwissBorg is working with blockchain investigators, white-hat hackers, and security partners like Fireblocks and the Solana Foundation. Exchanges have already blocked some of the transactions connected to the exploit. To prevent similar breaches, the platform also promised to improve third-party risk oversight and strengthen security protocols.

Broader security concerns in crypto

Discussions concerning third-party integration and API dependency vulnerabilities in the crypto industry have been triggered by the incident. It adds to a string of exploits in September, including a $2.4 million attack on Nemo Protocol, a decentralized finance project on Sui (SUI). 

While SwissBorg’s transparency and commitment to reimbursing users have been praised, the hack underscores ongoing risks for staking programs and DeFi services. For updates and recovery plan announcements, the company has directed users to its official X account.





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Kinto Token Crashes 91% As Ethereum L2 Project Shuts Down After Hack
Crypto Trends

Kinto Token Crashes 91% as Ethereum L2 Project Shuts Down After Hack

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Kinto Network’s governance token has lost more than 91% of its value after the team announced it will shut down its Ethereum layer-2 blockchain at the end of September. The decision follows months of setbacks, including a devastating hack and failed fundraising efforts.

The project, built on Arbitrum and settled on Ethereum, tried to combine centralized exchange efficiency with decentralized security. It also offered tokenized stock trading of companies like Apple and Microsoft. But despite its ambitious plans, Kinto could not survive the financial and security challenges.

1/ 🛑 Kinto is shutting down.

After exhausting every path to keep going, we’re conducting orderly wind-down to protect users and community.

– Users can normally withdraw assets
– Phoenix lenders receive ~76%
– Morpho Victims can claim up to $1.1k each

Read full details 🧵

— Kinto (@KintoXYZ) September 7, 2025

Hack and Failed Rescue Plan

In July, an industry-wide exploit drained about 577 Ether (worth $1.6 million) from Kinto’s protocol. The vulnerability came from the ERC-1967 Proxy standard, a widely used OpenZeppelin codebase. Several projects were affected, but Kinto never fully recovered.

The team raised $1 million in debt to restart its “modular exchange,” yet worsening market conditions killed further fundraising. “Every day that we go on, the funds dwindle further. We’ve operated without salaries since July,” the team wrote in a Medium post. They added that shutting down cleanly was the only responsible choice left.

Kinto will return remaining assets to lenders, including $800,000 of Uniswap liquidity. Lenders are expected to recover about 76% of their loan principal. Victims of the hack will also receive a $1,100 goodwill grant per affected address, with co-founder Ramon Recuero personally contributing over $130,000.

Kinto’s Second Collapse

This is Recuero’s second crypto project to fail. His earlier venture, Babylon Finance, shut down in 2022 after a $3.4 million hack.

Following the shutdown news, the Kinto token (K) has fallen 91% to $0.38, with its market cap barely above $1 million. The token had reached a peak of $14.5 million just weeks earlier in mid-August.

Also Read: Ethereum whale cashes out $8.97M profit after Kraken deposit





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Iran
GameFi Guides

Iran’s Crypto Sector Suffers 11% Decline Following $90-M Exchange Hack

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Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

According to reports, Iran’s on-chain crypto activity fell sharply in the first half of 2025. Inflows totaled $3.7 billion in the first seven months, a 10% drop from the same period in 2024. The slump accelerated after April: June flows contracted 50% year-on-year and July tumbled 75%.

Major Exchange Breach Shakes Trust

Based on a TRM Labs report, a major security breach hit Nobitex on June 18. Roughly $90 million was taken from hot wallets, source code was leaked, and some stolen coins were steered to vanity addresses that referenced the Islamic Revolutionary Guard Corps.

Outflows from the exchange spiked — more than 150% in the week before the fighting — as traders moved funds to what they saw as safer places. Trust, already fragile, was seriously damaged.

Inbound Transactions Collapse As Users Withdraw

Nobitex’s inbound transfers dropped by about 70% year-on-year after the breach. Some dormant Bitcoin wallets tied to mining activity were activated and later routed funds into a newly created hot wallet.

Regulators responded by imposing overnight trading curbs designed to slow panic, but many users had already pulled funds offshore. Reports show a surge in transfers to foreign platforms and payment processors that have lighter identity checks.

Stablecoin Freezes Strain Liquidity

In July, Tether froze 42 wallets linked to Iran, removing a large chunk of usable stablecoin liquidity on local rails. More than half of those wallets had ties, on-chain, to Nobitex or addresses flagged with IRGC links, though ownership remains unclear.

Tether also froze $27 million in USDT tied to Garantex, a sanctioned Russian exchange, an action that highlights the broad reach of compliance moves. The US Treasury blacklisted Garantex in 2022, and that prior action has had echoing effects on market behavior.

Total crypto market cap currently at $3.84 trillion. Chart: TradingView

Power Cuts And Conflict Worsen Market Stress

The decline in flows came during a period of heightened regional tension. A 12-day conflict with Israel erupted in mid-June while nuclear talks stalled. Israeli strikes and internal disruptions led to widespread electricity outages.

Mining rigs were idled. Trading became harder. For many traders, the safest option was to move funds off domestic rails; for others it was to switch stablecoins or chains.

New Taxes Tighten The Grip

In August, Iran approved the Law on Taxation of Speculation and Profiteering. The law brings capital gains taxes to crypto, gold, real estate, and forex.

Enforcement will roll out in stages, but officials say oversight will increase. That policy move, combined with freezes and hacks, gives firms more reason to pause or shift operations.

Featured image from Getty Images, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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Iran Crypto Flows Fall 11% Amid Israel Conflict And Nobitex Hack
GameFi Guides

Iran Crypto Flows Fall 11% Amid Israel Conflict and Nobitex Hack

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Iran’s cryptocurrency market has taken a major hit in 2025, with trading flows falling 11% as tensions with Israel escalate and a massive hack shakes confidence in local exchanges.

According to blockchain analytics firm TRM Labs, Iranian crypto flows reached $3.7 billion between January and July, down from last year’s levels.

The biggest drop occurred in June and July when nuclear talks collapsed, a 12-day war with Israel, and power cuts in Iran. TRM Labs noted that Israeli cyber and kinetic operations, combined with government shutdowns, fueled the downturn.

Adding to the turmoil, Nobitex, Iran’s largest crypto exchange handling 87% of the country’s transactions, suffered a $90 million hack on June 18. 

The hacking, which was done by a pro-Israel hacking group known as Predatory Sparrow, caused liquidity to slow down, transactions to slow down, and users to go to riskier foreign exchanges with lax KYC procedures.

The heat was added in July when stablecoin issuer Tether blacklisted 42 addresses associated with Iran, locking up millions of USDT. This action caused a stampede of Iranians to sell their TRON-based USDT and switch to Dai on Polygon.

Despite the setbacks, crypto remains vital for many Iranians. With soaring inflation and tough sanctions cutting off access to the global financial system, people continue to rely on stablecoins as a safe store of value. 

TRM Labs added that Iran also uses crypto for political purposes, including buying sensitive goods from China and funding espionage, though illicit activity makes up less than 1% of total volume.

Also Read: Crypto Trader Moves $215M Bitcoin on Hyperliquid to Buy ETH



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