Ongoing Solana-based wallet hack has already seen millions drained

A security vulnerability impacting the Solana ecosystem has reportedly seen millions in funds drained across a number of Solana-based wallets.

At the time of writing, Solana (SOL) is currently trending on Twitter as countless users are either reporting on the hack as it unfolds, or are reporting to have lost funds themselves, warning anyone with Solana-based hot wallets such as Phantom and Slope wallets to move their funds into cold wallets.

IMPORTANT- please retweet and tag @phantom and @solana

1. Many users are claiming they are getting notifications that they are sending tokens to an unknown address

2. Common Denominator is that they have all been @phantom wallets

— Solar Dex (@solar_dex) August 2, 2022

So far both Phantom and Magic Eden have commented on the issue, with wallet provider Phantom noting that it is working with other teams to get to the bottom of the issue, although it says it does not “believe this is a Phantom-specific issue” at this stage.

We are working closely with other teams to get to the bottom of a reported vulnerability in the Solana ecosystem. At this time, the team does not believe this is a Phantom-specific issue.

As soon as we gather more information, we will issue an update.

— Phantom (@phantom) August 3, 2022

Magic Eden confirmed the reports by stating that “seems to be a widespread SOL exploit at play that's draining wallets throughout the ecosystem” as it called on users to revoke permissions for any suspicious links in their Phantom wallets.

Twitter user @nftpeasant has been following the incident closely, and according to their research via Solscan, around $6 million worth of funds have already been siphoned from Phantom wallets during a 10-minute period on August 2. In one instance it appears a Phantom wallet user had $500,000 worth of USDC drained from their account.

???!!! https://t.co/sBDgxqGyaw

— Matthew Graham (@mattysino) August 2, 2022

Popular scam detective and self-described “on-chain sleuth” @zachxbt also did some digging and revealed to their 274,800 followers that the hackers initially funded the primary wallet associated with this attack via Binance seven months ago.

Related: Solana-based stablecoin NIRV drops 85% following $3.5M exploit

The transaction history shows that the wallet remained dormant until today before the hackers conducted transactions with four different wallets 10 minutes before the attack started.

Scammers wallet funded via Binance 7 months agohttps://t.co/5gQbObcsg4 https://t.co/sco5SPBrne pic.twitter.com/AL6Hm4F3R3

— ZachXBT (@zachxbt) August 3, 2022

At this stage it is unclear if the hack is ongoing, where it originated and if more user funds are still at risk. However in response to @zachxbt’s post, user @cryptojpeg noted that:

“Only 13 txn out of which 3 of those are solana deposit txn and 1 is drain txn So basically one of these 9 txn made the wallet vulnerable to the drain, if it's not related to something else.”

Cointelegraph has reached out to Phantom for comment on the matter, and will update the story if the firm responds.