SwissBorg fell victim to a cyberattack in which unknown perpetrators exploited a vulnerability in the API of staking provider Kiln and siphoned off around 193,000 Solana from the company’s Earn program.

As SwissBorg stated on X, the app itself and other Earn products were not affected by the incident. At the time the theft was first disclosed on Tuesday, the loss was estimated at roughly $41 million. Since SOL has gained several percentage points over the past few days, the stolen coins are now worth nearly $48 million.

A tweet from SwissBorg explains an API compromise affecting the Swiss crypto exchange’s SOL Earn program and assures users that Solana and other Earn funds—$41 million in total—remain completely safe. SwissBorg comments on the incident | Source: X post

On the same day, security firm PeckShield reported a breach of the Sui-based DeFi platform Nemo, where hackers stole $2.4 million worth of USDC.

At the center of the attack was a compromised application programming interface (API). This digital bridge enabled the SwissBorg app to communicate with the Solana staking network. By manipulating this connection, the hackers were able to inject false requests and withdraw funds. In the crypto industry, such API attacks are considered particularly risky because they target core interfaces essential to the operation of entire platforms. The Swiss company said it remains in solid financial condition despite the hack. Daily operations are not affected, and affected Solana holders will be contacted directly via email.

Solana Holders to Be Compensated by SwissBorg

Although tens of thousands of the exchange’s users lost part of their SOL balances, SwissBorg says it will fully cover the damage. The company will tap its own Solana treasury holdings to make up the shortfall. “There will be no loss for users of the SwissBorg community,” emphasized spokesperson Laura Gialluca. CEO Cyrus Fazel said in an X stream that only one percent of the customer base was affected and that while it was “a bad day” for the crypto exchange, there was no serious threat.

CEO Cyrus Fazel said in an X
CEO Cyrus Fazel said in an X

At the same time, the Swiss crypto platform, founded in 2018, said it is already working with international authorities, exchanges, and so-called white-hat hackers to support the investigation. Some of the Solana transactions have already been blocked. According to the company, SwissBorg has around 890,000 users, with community-managed assets totaling just under $2 billion.

Because SwissBorg had a reputation as a reputable and secure crypto platform, the reputational damage is likely to exceed the immediate value of the 193,000 stolen Solana coins. The incident is part of a growing number of cyberattacks in the crypto sector. According to the FBI’s Internet Crime Report, losses in 2024 already totaled $9.3 billion, a 66 percent increase from the previous year. Ripple CEO Brad Garlinghouse has also repeatedly warned about crypto criminals recently.