SwissBorg Responds to $41M SOL Theft, Promises No User Loss

SwissBorg CEO Cyrus shared on Monday that the company’s team is “working tirelessly” to investigate the incident that led to a significant loss of Solana (SOL), while assuring the community that no users will bear any financial loss.

In his X post, Cyrus emphasized two critical points: “First, the SwissBorg community will not take a loss. Any gap in recovered funds will be covered. Second, this was not a breach of the SwissBorg platform.”

He added, “It was an exploit that occurred on an external DeFi wallet held with a counterparty, used to operate ONLY the specific SOL Earn strategy. No other strategies are impacted, and user funds remain fully secure.”

He also expressed gratitude to several organizations that assisted SwissBorg during the incident, including Security Alliance, ZachXBT, Chainalysis, FireblocksHQ, Kiln Finance, as well as the wider community, for their swift collaboration and support.

Exploit Targets Staking Partner Kiln

Hours before the post, SwissBorg confirmed that hackers had stolen more than $40 million worth of Solana tokens by exploiting a vulnerability in Kiln’s API. Kiln, a staking infrastructure provider supporting blockchain yield products like SwissBorg’s SOL Earn, was targeted, allowing attackers to drain approximately 193,000 SOL.

The attack didn’t hit SwissBorg itself. Hackers found a loophole in Kiln’s API, which connects SwissBorg’s app to Solana staking. Only the SOL Earn strategy got affected; everything else was totally safe. SwissBorg acted fast, and Cyrus’s post made it clear they’re focused on being transparent and protecting users. 

They also said they’ll cover any losses, so no one loses money. The investigation is still going on, and SwissBorg shared that it will keep users and the crypto community updated as they learn more.

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