Hackers exploit Kiln API vulnerability, draining 193,000 SOL from SwissBorg’s Solana Earn program
Swiss-based crypto wealth management platform SwissBorg confirmed a security breach that resulted in the loss of roughly 193,000 Solana (SOL) tokens, valued at around $41 million. The incident stemmed from a compromise in the API of Kiln, a third-party staking infrastructure provider.
The exploit specifically targeted SwissBorg’s Solana Earn program, which relies on Kiln’s API to facilitate staking rewards. By manipulating API requests, attackers were able to siphon funds directly from Solana’s staking network.
SwissBorg emphasized that its core app and other Earn products remained unaffected, limiting the impact to about 1% of its users and 2% of its assets under management.
Company Response and Assurance
Speaking shortly after the breach, SwissBorg CEO Cyrus Fazel admitted it was “a bad day” for the company but insisted the incident would not threaten its financial stability.
“It’s a big amount of money, but it doesn’t put SwissBorg at risk,” Fazel said during an X Space session. The company pledged to reimburse affected users, noting its treasury reserves were sufficient to cover the losses.
Investigations and Recovery Efforts
SwissBorg confirmed it is working with international agencies, exchanges, and white-hat hackers to track stolen assets. Blockchain data shows the funds have been routed to a wallet now flagged as the “SwissBorg Exploiter” on Solscan. Some of the compromised transactions have already been blocked, though recovery efforts remain ongoing.
Broader Implications for Crypto Security
This breach highlights the growing risks associated with third-party infrastructure providers in the digital asset ecosystem. Experts warn that APIs, while essential for cross-platform integrations, are increasingly attractive targets for sophisticated attackers.
“API vulnerabilities are a silent but serious threat in crypto, and this incident underscores the need for stronger security audits across the industry,” noted a cybersecurity researcher familiar with blockchain exploits.
While SwissBorg moves quickly to compensate affected users and reinforce its systems, the $41 million Solana hack serves as another reminder of the fragile balance between innovation and security in crypto finance.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.