SwissBorg partner API attacked! $41 million SOL stolen, the company promises full compensation.

The Swiss encryption platform SwissBorg confirmed that its partner API was attacked externally, resulting in $41 million (approximately 193,000 SOL) in funds being stolen, affecting about 1% of users. Although the main application and other stake programs were not affected, this incident severely impacted the company's SOL Earn yield program. CEO Cyrus Fazel promised to fully compensate affected users and strengthen security measures to prevent similar incidents from happening again.

Attack Details: Partner API as Entry Point

The Swiss encryption platform SwissBorg confirmed that its partner API was attacked externally, resulting in $41 million (approximately 193,000 SOL) in stolen funds, affecting about 1% of users. Although the main application and other stake programs were not affected, this incident severely impacted the company's SOL Earn yield program. CEO Cyrus Fazel pledged to fully compensate affected users and strengthen security measures to prevent similar incidents from happening again.

Fazel pointed out in the live broadcast on September 8 that this incident was not directly targeting the SwissBorg platform, but rather stemmed from an API vulnerability of "one of the world's best staking service partners". The attackers exploited this vulnerability to steal approximately 193,000 SOL from the SOL Earn program, worth about 41 million dollars.

Loss scale: approximately 2% of the assets under management (AUM) by SwissBorg.

Scope of impact: Limited to users participating in the SOL Earn strategy, other staking plans are secure in terms of platform funds.

Immediate Response: Full Compensation and Fund Tracking

After the incident, SwissBorg immediately allocated funds to compensate users for their losses and initiated multiple collaborations to track the stolen assets:

Cooperating units: white hat hackers, security companies, Fireblocks, Solana Foundation, blockchain investigation teams

Action results: Several exchanges have frozen wallet addresses related to the attack, preventing some funds from being liquidated.

Transparent communication: Fazel promises to continuously update the community on the progress of fund recovery and security reinforcement.

Financial Stability and Security Upgrade

Despite the significant loss amount, Fazel emphasized that SwissBorg's financial situation is stable and has sufficient resources to cover the full compensation. He also acknowledged that security vulnerabilities of external partners are a risk that cannot be ignored, and he views this incident as an important warning for the encryption industry.

Security measures: A more stringent partner review mechanism and API security testing will be introduced.

Prevention Strategy: Collaborate with global law enforcement agencies to establish a cross-platform security joint defense network.

Community Trust and Market Insights

Fazel candidly stated that while financial losses can be compensated, the emotional impact experienced by users during the incident is much deeper. He expressed:

"That feeling of 'I just lost a part of my funds' is never easy. But it is in these moments that we realize who our true supportive community is."

This incident highlights the potential risks of cryptocurrency platforms when relying on third-party services, and reminds investors to pay attention to the platform's security architecture and the background of its partners when participating in yield programs.

Conclusion

The API attack incident at SwissBorg not only exposed the vulnerabilities of external supply chain security but also sounded the alarm for the entire encryption industry. As the platform commits to full compensation and strengthens security measures, the market will closely monitor its progress in recovering funds and the trust restoration process. For investors, this is an opportunity to reassess their security strategies for crypto assets.