Solana has had its fair share of troubles recently, with them being forced to stop the Blockchain due to a bug, and coming close to running into a sleeping whale that threatened to take the coin to $0. But Solana is still here. So let us take a look at the latest misfortune to happen.

The hack

Early on August the 3ed it was discovered that wallets were being drained of their $SOL, and this was happening at an alarming rate. The total number of wallets affected, that I have been able to find, was a reported 7,767 wallets that have been drained, made by Solana on Twitter. But I have seen numbers putting the total at around 9,000 wallets also. So I guess the final numbers are still being tallied. 

And the take from the hack has been estimated to be valued at around $8M. That puts the amount, on average, taken from each wallet at just under $1,000. Which is a fair bit of money, at least in my eyes. And it is also a severe blow for the Solana community.

The slippery Slope wallet

It appears that the hackers have found an exploit in the Slope wallet that lets them extract the mnemonic faces through their servers. And this appears to be the case for people who also just have interacted with a Slope wallet.

And as you can see in the tweets, it appears that Slop was sending the private keys as plain text. Which is just utterly baffling to me. And screams of either incompetence or so much disrespect for their customers that I am at a loss for words to describe it.

While we have not fully confirmed the nature of the breach, in the spirit of safeguarding our user base, -Slope Finance

While Slope in their official statement is still "unaware" of the exact cause behind the breach. It kind of sounds like they are not aware of the p*ss poor job the coder or coding team has done making the wallet. Which would be another very red flag. But I think it might be a liability thing, if they publicly accept blame they might open themself up to litigations from their customers. 

Which is a whole can of worms in and of itself. But personally, if I was affected by thing, I would look into the possibility of creating a class action lawsuit against Slope Finance. At the very least it would force the company into bankruptcy, removing what appears to be a completely incompetent company to begin with or a company that has no right to handle people's crypto.

What are your thoughts on this whole mess? While I do feel for everyone affected, I cant fully grasp how Slope thought that sending the private keys as open text was the way to do things. What are your thoughts on this whole mess? Please share in the comment section down below.

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