According to the latest reports, the Solana blockchain, an Ethereum Layer-1 rival, is faced with massive exploits.
Accordingly, the latest hacking incident has affected thousands of Phantom addresses, with over $6 million worth of assets wiped out.
Meanwhile, over 7,000 wallets have been compromised by the exploit, and reports indicate that more are likely to be impacted.
However, insiders familiar with the recent incident noted that the numbers are inaccurate because no official statement has been made. This is just an estimate.
Users of Phantom Wallet are advised to move their assets to other exchanges pending when the matter is investigated.
Commenting on the happenings, Solana announced that it is investigating the incident and that no hardware wallet was compromised as reported.
Phantom Begins Investigation As SOL Tanks
Phantom is a Solana-hosted wallet for decentralized finance (DeFi) and non-fungible tokens (NFT). The platform revealed that it had started an investigation to uncover the cause and extent of the exploit.
However, the network added that an exploit such as this is not limited to Phantom alone but is working to ascertain the cause.
Moreover, there is a report that the Solana Blockchain has a system defect that the hacker exploited to steal funds, and the Phantom development team assures to reveal the likely outcome.
Since last year, the Solana Blockchain has been the target of multiple exploits that have rocked the platform, leading to huge losses.
Thus, the latest exploit has put Solana’s native token, SOL, under intense pressure as it tanks by 4%. At the time of writing, the SOL currently trades at $30.09, 3% down, and has a market capitalization of $13.5 billion.
Blockchain Exploit is on the Rise
Like other traditional technologies safeguarding assets, blockchain technology can also be hacked. Attackers are devising ways to effectively breach security architecture in places where money or items of value are stored.
As a result, blockchain, which is a by-product of cryptocurrency, is currently a prime target of hackers who see the technology as the next toy to tamper with.
Furthermore, due to the rapid adoption and expansion of the use of digital currencies by organizations, the ecosystem is now where hackers converge for their exploits. Since blockchain technology has been dubbed as “unhackable” because it provides layers of added security to users, certain situations render it fallible.
As secure as blockchain is, which is not in doubt, attackers have managed to detect defects they exploit to cash out of the situation.
For example, the verification process is considered one of the most widely known ways to hack into a blockchain network. Here, miners review each transaction to ensure its genuineness, and this is where hackers can take over the process.
The hackers can then develop a clone version of the fork used by the original miners to direct transactions to them, which is most of the time undetected.
Vulnerabilities do exist on blockchains, and hackers are doing much to exploit as many as they can.
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