It is with no small degree of regret that we announce the unfortunate event of SwissBorg, a well-established wallet and exchange service, losing a sum of no less than $41.5 million in Solana to a most audacious hack. The nefarious individuals behind this operation exploited a partner API, a weak point in the firm’s SOL staking protocol, which they had somehow overlooked.
The company, in their usual optimistic tone, insists that this theft is confined to the particular service affected, although it must be said that the loss represents a rather substantial chunk of their Solana holdings. Nonetheless, in a move that will surely reassure their customers, SwissBorg has pledged to attempt a partial refund of the stolen assets, even if those funds cannot be fully recovered.
A Truly Dastardly Act of Theft
ZachXBT, the infamous crypto detective who has been warning of a so-called “crime supercycle” for months now (who knew?), has been following this crime spree with considerable attention. This particular hack, he reports via his Telegram, has been one of the most devastating in recent times, with an estimated loss of $41.5 million in Solana alone.
Not long after ZachXBT’s announcement, the firm itself came forward with a public acknowledgment of the matter, describing in some detail the unfortunate sequence of events. The hackers, so crafty, took advantage of a compromised partner API, which gave them access to the SOL Earn program, thus enabling them to spirit away a considerable sum of Solana.
KILN SOL Earn Incident & SwissBorg Recovery Plan
A partner API (Kiln) was compromised, impacting our SOL Earn Program (~193k SOL, <1% of users).
👉 Rest assured, the SwissBorg app remains fully secure and all other funds in Earn programs are 100% safe.Our recovery plan.…
– SwissBorg (@swissborg) September 8, 2025
It would seem that this theft, in the most unfortunate of manners, has thoroughly compromised SwissBorg’s SOL Earn program, leaving it bereft of the valuable tokens. One cannot help but wonder how the attackers were able to make off with so much in such an alarming fashion.
Perhaps most troublesome for the company is the fact that their CEO, Cyrus Fazel, had spoken with considerable enthusiasm about Solana in a 2024 interview. This unfortunate event, one might say, puts quite a damper on the firm’s previously bullish outlook on the token, and surely this would be a blow to the CEO’s spirits as well.
The Woes and Recovery Prospects
While it is true that SOL Earn represents only a small portion-less than 1%-of the firm’s total user base, and that other staking protocols for different tokens remain untouched, this breach has nonetheless dealt a rather serious blow to SwissBorg’s reputation. Since the incident occurred so recently, the full consequences of this loss are still unknown, though certain figures are coming to light.
For instance, according to the ever-watchful Arkham Intelligence, SwissBorg is reported to hold around $72.6 million in Solana. Therefore, this hack has accounted for a significant proportion of their holdings. The firm has promised to use its own treasury to refund a “significant portion” of the affected users’ balances, but naturally, that depends on their ability to recover some of the stolen funds.
API exploits, such as the one in this case, have been particularly damaging of late, as witnessed by a recent JavaScript hack that sent tremors through the crypto community. Even when a platform has fortified its own security measures, the weaknesses in third-party software can leave the door wide open for mischief.
In a bid to ease the concerns of the public, Mr. Fazel has announced that he will conduct a live broadcast this very afternoon, in which he shall explain the details of the hack and share the company’s plans for moving forward.
One can only hope that the white-hat investigators, those unsung heroes of the crypto world, will come to the aid of SwissBorg and recover at least some of the misappropriated funds. Though it must be said, crypto crime prevention has been somewhat lackluster of late, yet the diligent investigators press on, undeterred by previous setbacks.
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2025-09-09 00:52