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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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Swissborg Crypto Platform Loses $41M Solana In Major Security Breach
Crypto Trends

SwissBorg Crypto Platform Loses $41M Solana in Major Security Breach

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SwissBorg, a Switzerland-based crypto wealth management platform, confirmed hackers stole over $40 million in Solana after exploiting a vulnerability in its staking partner Kiln’s API. The attack drained around 193,000 SOL tokens, worth $41 million at the time of writing.

The attack was on Kiln, a staking infrastructure company that supports yield products on blockchains such as Solana (SOL) and Ethereum (ETH). Hackers have broken the API of Kiln, the interface that links the app of SwissBorg to the staking network of Solana. 

Attackers could use API requests to siphon funds directly out of the Solana Earn program at SwissBorg. Importantly, SwissBorg said its app and other Earn products such as Bitcoin (BTC) and ETH staking were not affected. The company also assured users that its financial health remains strong and that only about 1% of its customer base was impacted.

SwissBorg Promises Reimbursement

CEO Cyrus Fazel called it “a bad day but not a fatal blow.” Speaking in a video posted on X, he confirmed the hack only affected Solana deposits and pledged full reimbursement for impacted users. “With the current treasury we have, we could already do that,” Fazel said.

SwissBorg added it is working with exchanges, international agencies, and white-hat hackers to track the stolen funds. Some transactions have already been blocked. Blockchain data shows the stolen tokens were moved to a wallet now labeled “SwissBorg Exploiter” on Solscan.

Despite the setback, Fazel emphasized the incident would serve as a learning experience, strengthening SwissBorg’s security going forward.

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





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SwissBorg hacked for $41M in Solana after Kiln API compromise
Crypto Trends

SwissBorg hacked for $41M in Solana after Kiln API compromise

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SwissBorg, a Switzerland-based crypto wealth management platform, said hackers exploited a vulnerability in the API of its staking partner Kiln, draining about 193,000 Solana tokens from its Earn program. 

The SwissBorg app and other Earn products were not impacted by the hack, the company wrote in a post on X. The stolen SOL (SOL) tokens were worth roughly $41 million at time of writing.

Source: Swissborg

The breach originated with Kiln, a staking infrastructure provider that powers yield products on blockchains such as Solana and Ethereum.

An API attack targets the software “bridge” that connects two systems. In SwissBorg’s case, its app relied on Kiln’s API to communicate with Solana’s staking network. By compromising the API, hackers were able to manipulate requests and siphon off funds.

SwissBorg said that despite the hack, the company remains in good financial health, daily operations are unaffected and the affected users will be contacted directly by email.

Related: Crypto users urged to take extreme care as NPM attack hits core JavaScript libraries 

A ‘bad day’ but not a fatal blow

SwissBorg CEO Cyrus Fazel hosted an X Space on Monday shortly after the company’s statement that it had been hacked. According to Fazel, the breach only impacted users depositing Solana tokens in its Earn program, which accounts for about 1% of its customer base and 2% of total assets.

“It’s a big amount of money, but it doesn’t put SwissBorg at risk,” the spokesperson said.

SwissBorg’s Solana Earn program lets users deposit SOL through its app to earn staking rewards, using the infrastructure provided by Kiln. The product was part of SwissBorg’s wider suite of Earn offerings on assets like BTC and ETH, designed to give retail users simple access to staking yields without managing validator nodes or DeFi protocols directly.

The company pledged to reimburse affected users, noting that “with the current treasury we have, we could already do that,” while stressing it is also working with international agencies, exchanges and white-hat hackers to assist with the investigation, and that some transactions have already been blocked.

Calling it “a bad day for SwissBorg,” Fazel said the incident would ultimately serve as a learning experience for the company.

Source: Solscan

Blockchain data shows the stolen funds were routed to a Solana wallet now labeled on Solscan as the “SwissBorg Exploiter,” advising users to exercise caution when interacting with it.

Cointelegraph reached out to Swissborg and Kiln for comment, but did not receive an immediate response.



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