Solana (SOL) Suffers Massive Software Supply Chain Attack, Draining Funds From dApps

Layer 1 blockchain network Solana (SOL) suffered a massive software supply chain attack on Tuesday, impacting the protocol's users and developers.

Layer 1 blockchain network Solana (CRYPTO: SOL) suffered a software supply chain attack Tuesday, impacting the protocol’s users and developers.

What Happened: The attack involved the solana/web3.js JavaScript library, which is used by many decentralized applications (dApps) on the Solana blockchain.

An account with access to publish the library was compromised, leading to the introduction of the malicious code, the Solana development team, Anza, reported.

The code captured private keys and transmitted them to a hardcoded address, leading to attackers draining funds from dApps that interacted with these private keys.

“This should not affect non-custodial wallets, as they do not expose the private key stored in the library during any transaction,” Anza said on X (NYSE:TWTR).

“Only projects that directly handle private keys and were updated between 3:20 pm UTC and 8:25 pm UTC are affected.”

Solana development team quickly caught and erased the unauthorized code, asking developers to update to version 1.95.8.

Analyst “MartyParty” later confirmed that the money flow had stopped, indicating the issue was fixed.

Impact: Six-Figure Loss, SOL Price DropsDeFiLlama’s pseudonymous developer, 0xngmi, highlighted that some investors reported six-figure losses.

On-chain data showed that as much as $160,000 was lost, predominantly in SOL tokens, along with $31,000 in other tokens.

“Could’ve been way worse, but this was handled well,” 0xngmi said.

SOL Price Action: At press time, SOL was down 1.3% in the past 24 hours and trading at $235.98.

Solana crypto asset dropped as low as $223 and crashed to $217 on December 3, when the attack was reported.

However, the altcoin had soared 289.58% since December 2023 and reached a market cap of $112 billion.

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