Now we know: The hack that drained thousands of user wallets (more than 8,000 at writing time) on cryptocurrency platform Solana wasn’t a result some sort of wide-ranging system failure. It was very likely due to egregiously bad security practices by cryptocurrency wallet provider Slope. According to security company Otter, the hack was due to Slope sending users’ seed phrases in plaintext to a centralized server. A seed phrase is an equivalent to a crypto private key; it’s a string of words that “unlock” the funds in a crypto wallet, allowing whoever owns the phrase to do with them whatever they please. “Plaintext” means that these phrases were sent over the internet unencrypted, making them an easy target for hackers. In short: Slope did something that no company should ever, ever do, and it cost its users more than $4 million. (For the record, Slope said in an official statement that “nothing is yet firm” regarding the hack, but several other experts agree with Otter.)
Read more : 4 things to learn from the embarrassing Slope hack on Solana.
