September 8, 2025 – SwissBorg, the Swiss-based crypto wealth management platform, was hit by a $41 million hack targeting its Solana (SOL) Earn program. The breach exploited a vulnerability in their partner staking provider, Kiln’s API, allowing attackers to siphon approximately 192,600 SOL—nearly half of SwissBorg’s Solana reserves (which stood at $72.6 million) .$SOL
What Happened?
Hackers manipulated the API that connects SwissBorg’s Earn product to external staking services. Through this compromised endpoint, they transferred nearly 193,000 SOL to a newly flagged wallet—now labeled as the “SwissBorg Exploiter” on-chain .
Impact: Limited but Significant
SwissBorg confirmed in a public statement that less than 1% of their user base was affected, and crucially, all core systems and other services remain safe and operational . To honor user trust and minimize damage, SwissBorg is covering the losses using its own Solana treasury, although final reimbursement amounts are still being determined .
Response & Recovery Strategy
SwissBorg launched a multi-pronged response:
Working with blockchain forensics teams, white-hat hackers, Fireblocks, and the Solana Foundation to trace the stolen funds.
Coordinating with exchanges to block related transactions.
Reassessing third-party risk, tightening API governance, and reinforcing internal security protocols .
CEO Cyrus Fazel described the incident as “a bad day, but not a fatal one,” underlining SwissBorg’s resilience .
Why This Matters for the Crypto Community
This exploit highlights the rising threat of third-party dependencies and API vulnerabilities in DeFi and staking platforms. Kicking off amid broader industry security concerns—such as the recent $2.4 million Nemo Protocol hack on Sui—it pressures the industry to reevaluate risk management around external integrations .
Despite the setback, SwissBorg’s transparent communication and proactive compensation plan have earned community nods for responsibility and trust preservation.
