Swiss crypto platform SwissBorg suffered a $41 million theft when attackers compromised a partner API, draining approximately 193,000 SOL from the company’s Earn program and affecting roughly 1% of users.
CEO Cyrus Fazel addressed the incident during a Sept. 8 live broadcast, confirming that SwissBorg’s main application remains secure while emphasizing the company’s commitment to full user compensation.
The breach occurred through what Fazel described as “one of the best partners in the world” for staking services. He added:
According to Fazel, the stolen funds represent approximately 2% of SwissBorg’s total assets under management (AUM).
The company immediately allocated treasury funds to cover user losses, with Fazel stating the company possesses sufficient resources for complete reimbursement.
The platform also engaged white-hat hackers and security partners to recover the compromised funds through blockchain analysis and exchange cooperation.
Multiple exchanges blocked transactions linked to the attack, preventing some stolen funds from being liquidated. Fazel noted that various entities, including Fireblocks, Solana Foundation, and blockchain investigators, assisted in tracking the stolen assets across multiple wallet addresses.
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The incident exclusively affected users participating in SwissBorg’s SOL Earn strategy, leaving other staking programs and platform funds untouched.
Fazel stressed that the company’s financial health remains stable despite the significant loss.
Despite due diligence on partner selection, external vulnerabilities can expose user funds to sophisticated attackers. Fazel framed the incident as a learning experience while acknowledging the emotional toll on affected users.
He stated:
The CEO promised regular updates throughout the recovery process and committed to transparent communication regarding fund retrieval efforts.
SwissBorg plans to implement additional security measures to prevent similar incidents while collaborating with law enforcement agencies worldwide.
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Source: https://cryptoslate.com/swissborg-loses-41m-in-sol-after-partner-api-compromise-affects-earn-program/
