The Solana ecosystem suffered a serious security breach on Wednesday, with users reporting that their funds had been drained without their knowledge across a number of Solana-based hot wallets, including Phantom, Slope and Trust Wallet.
According to media reports, more than US$580 million worth of digital assets from over 8,000 wallets on the Solana public chain were stolen. The attack was still ongoing by press time.
This latest security incident in the crypto industry has revived a key question: How can investors minimize their losses from security incidents, and what wallet should they choose to ensure asset security?
Magic Eden, a Solana-based NFT marketplace, confirmed the incident and reminded users to revoke permissions for any suspicious link in their phantom wallets. Meanwhile, many industry veterans recommended crypto investors to transfer their assets to top exchanges and relevant wallets to minimize losses and ensure their assets’ safety.
Due to the growing popularity of digital assets, many exchanges have fallen victim to cybersecurity attacks in recent years that resulted in the theft of user assets. The consequences of such attacks were often severe – some exchanges became bankrupt overnight and user assets were permanently lost. Amid the crypto winter, raising the alert and protecting users’ fund have become the top priority for global exchanges.
In a security alert on Wednesday, Huobi Global said that its security team had detected a large-scale security incident involving Solana and would take steps to block the inflow of illicit assets in a timely manner. It also recommended that SOL token holders transfer their hot wallet tokens to Huobi Global. Let’s take a look at how Huobi Global dealt with the incident.
Having been intimately involved in the digital assets industry for many years, the Huobi Global team has a strong understanding of security incidents and has formulated a series of monitoring and response measures to ensure the safety of the exchange and its users.
As a world-leading crypto exchange that has been operating with zero major security incidents for nine years, Huobi Global has an independent and professional security team comprising individuals highly experienced in blockchain and wallet security, APT intrusion countermeasures, and user asset protection.
Huobi Global adopts hot and cold wallet separation, multi-signature, and threshold signature technologies to ensure the security of the private key signature process. Huobi Global has allocated US$1.05 billion worth of assets to be stored in hot wallets, while the majority of users’ assets are stored in multi-signature cold wallets, thereby heightening security for a large portion of funds.
Huobi Global uses its proprietary security hardware to protect its storage capabilities. At the same time, the safety of each operation process is ensured through several mechanisms such as strict specification requirements, process standards, minimum authority, and multi-person back-to-back isolation operation.
With the popularity of digital assets, the latest Solana security incident won’t be the last one, and investors should be cautious when choosing wallets especially amidst this crypto winter.
“The latest security incident involving Solana shows that crypto investors must be constantly vigilant when it comes to safeguarding their assets. Keeping our users’ assets safe is the top priority of Huobi Global, which has a security track record that is unmatched in the industry. We stand ready to protect our users and their assets at all times,” said Huobi Group CFO Lily Zhang.
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