SwissBorg CEO Confirms No User Loss Following $40M SOL Staking Hack

Andrew Chen
Solana (SOL)

Getting your Trinity Audio player ready...
  • Hackers exploited Kiln’s API to steal 193,000 SOL ($40M).
  • SwissBorg pledges full coverage, protecting all users from losses.
  • Only the SOL Earn strategy was impacted; core platform remains secure.

SwissBorg, a leading European crypto wealth management platform, has reassured its community after hackers stole over $40 million worth of Solana (SOL) through a third-party vulnerability. CEO Cyrus made it clear that users will not bear any losses, emphasizing the company’s commitment to transparency and investor protection.

SwissBorg Responds Quickly to Solana Hack

In a statement shared on X, Cyrus said the team is “working tirelessly” to investigate the incident. He clarified that the exploit was not a breach of SwissBorg’s platform, but rather a vulnerability in an external DeFi wallet managed by its counterparty, Kiln Finance. The attack specifically targeted the SOL Earn strategy, leaving all other products and user funds unaffected.

SwissBorg further pledged that any shortfall in recovered funds will be covered by the company itself, ensuring customers remain financially unharmed.

Kiln API Exploit Drains 193,000 SOL

The incident stemmed from a weakness in Kiln’s API, which connects applications like SwissBorg to Solana’s staking infrastructure. Attackers exploited this loophole to siphon off around 193,000 SOL, valued at over $40 million. Importantly, SwissBorg’s systems were never compromised; the breach was isolated to Kiln’s staking operations.

Community and Security Partners Step In

SwissBorg credited several organizations, including Security Alliance, ZachXBT, Chainalysis, Fireblocks, and Kiln Finance, for their rapid response and collaborative support. This united effort highlights how crypto firms and independent investigators work together to minimize the damage of high-profile exploits.

Also Read: Tether Secures $8B in Gold with Private Swiss Vault to Boost XAUT and Cut Custody Costs

By committing to cover all losses and maintaining full transparency, SwissBorg is aiming to reinforce trust at a time when hacks and protocol exploits continue to shake investor confidence across the crypto sector. The company promised ongoing updates as the investigation unfolds.

While the Kiln exploit dealt a heavy financial blow, SwissBorg’s proactive stance and pledge to safeguard users may turn a crisis into a trust-building moment. As the inquiry continues, the incident underscores the critical importance of security partnerships and platform accountability in crypto.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Related Posts