Solv Protocol Seeks Fund Return After $2.7M Crypto Exploit

TLDR

• 38.05 SolvBTC worth $2.7M drained from the BRO vault

• Solv offers 10% bounty for the return of stolen funds

• Fewer than 10 users were impacted by the exploit

• Researchers cite double-mint and reentrancy flaws

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Solv Protocol confirmed that one of its Bitcoin Reserve Offering vaults was exploited. The attack resulted in the loss of about 38.05 SolvBTC. The drained amount is valued at roughly $2.7 million. SolvBTC is a token pegged to Bitcoin and used across the platform.

The project said fewer than 10 users were impacted by the incident. It added that all other vaults and user assets remain unaffected. Solv stated on X that it would fully cover the losses. The team also shared an Ethereum wallet address and offered the attacker a 10% white-hat bounty for returning the funds.

At the time of reporting, the attacker had not responded on-chain. Blockchain data shows no message sent to the designated address.

Researchers Cite Smart Contract Flaw

While a full post-mortem has not yet been released, security researchers have shared initial findings. Analysts pointed to a vulnerability in one of Solv’s smart contracts. Security firm Decurity’s automated bot reported a double-minting flaw in the Bitcoin Reserve Offering contract. The attacker reportedly triggered the vulnerability 22 times.

According to the findings, 135 BRO tokens were inflated into about 567 million BRO. The attacker then converted those tokens into approximately 38 SolvBTC. CD Security co-founder Chris Dior said the hacker exploited the flaw repeatedly before swapping the tokens. A pseudonymous researcher known as Pyro described the incident as a reentrancy attack.

Reentrancy attacks allow repeated calls to a contract before balances are updated. This method has affected several DeFi protocols in recent years.

Solv Works With Security Partners

Solv said it is investigating the incident with external security firms. The project named Hypernative Labs, SlowMist and CertiK as partners. The team stated that measures have been implemented to prevent similar attacks. It did not disclose specific technical adjustments.

Solv operates as a Bitcoin-focused DeFi platform. Users deposit Bitcoin and receive SolvBTC, which can be used for lending, borrowing and staking. The platform claims to hold 24,226 Bitcoin in reserves. That amount is valued at over $1.7 billion based on current prices.

Solv describes itself as the largest on-chain Bitcoin reserve. The exploit affected one structured yield vault within its ecosystem.

Token Reaction and Broader Context

Despite the exploit, the project’s native token SOLV remained stable. Market data showed the token rose about 2% over the past day. The broader crypto market experienced downward pressure during the same period. Solv said user assets outside the affected vault remain secure.

The incident adds to recent crypto security events involving smart contract vulnerabilities. Attackers continue to target DeFi protocols that manage large pools of assets.

Solv reiterated that impacted users will be compensated in full. The project is awaiting a response from the attacker regarding the bounty offer.

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