SwissBorg Loses $41 Million in SOL After Kiln API Compromise
SwissBorg, a Swiss-based crypto wealth management platform, disclosed a significant security breach resulting in the theft of around 193,000 Solana tokens (SOL), valued at approximately $41 million at the time of reporting. The breach originated from a vulnerability in the API of Kiln, SwissBorg’s staking infrastructure partner.
The compromised API, which facilitates communication between SwissBorg’s app and Solana’s staking network, was exploited by hackers to manipulate requests and divert funds from the Solana Earn program. This program enables users to stake SOL tokens and earn rewards without managing validator nodes directly.
Scope and Impact of the Breach
SwissBorg reported the hack affected roughly 1% of its user base and 2% of its total managed assets. Importantly, the company clarified that its main app and other Earn products remained unaffected by the incident. CEO Cyrus Fazel addressed the situation publicly, describing it as a “bad day for SwissBorg” but reassuring stakeholders that the company’s overall financial position remains secure.
SwissBorg has committed to reimbursing all users impacted by the breach, with sufficient funds available in its treasury to cover the losses. The company is actively cooperating with international law enforcement agencies, cryptocurrency exchanges, and ethical hackers to investigate the incident. Some suspicious transactions linked to the exploit have already been blocked.
Technical Details and Response
The attack exploited the API “bridge” connecting SwissBorg’s platform with Kiln’s staking infrastructure on the Solana blockchain. By gaining unauthorized access to this interface, attackers were able to execute fraudulent withdrawal requests.
Blockchain analytics reveal that the stolen SOL was transferred to a wallet now flagged on Solscan as the “SwissBorg Exploiter,” with users advised to exercise caution around this address.
SwissBorg’s CEO emphasized that the incident, while financially significant, does not threaten the company’s viability and will serve as a critical learning opportunity to strengthen security protocols going forward.
Attempts to obtain immediate commentary from Kiln and SwissBorg were made but not returned at the time of publication.
FinOracleAI — Market View
The hack represents a material security breach impacting SwissBorg’s Solana Earn product, likely causing short-term reputational damage and increased scrutiny on API-dependent staking services. Although the company’s financial position remains stable and it has pledged reimbursement, investor confidence could waver amid concerns over third-party vulnerabilities.
Market participants should monitor SwissBorg’s remediation efforts, regulatory responses, and any broader implications for staking infrastructure providers like Kiln. The incident underscores ongoing risks in DeFi ecosystems reliant on external APIs.
Impact: negative
