SwissBorg, a crypto services company from Switzerland, had a rough start to the week. On Monday, it announced a security breach that cost them about $41 million in Solana (SOL) tokens. This incident didn’t hit their main app directly. Instead, a partner they used for staking operations was compromised.
The company shared the tough news in a video on X, formerly Twitter. A SwissBorg spokesperson called it “a difficult day for the company.” They explained that an “API from a partner was compromised,” which led to an attack on their special SOL Earn program. A crypto investigator known as ZachXBT later confirmed the loss, stating it was around 192,600 SOL. This amount matched the $41.3 million valuation based on market prices, a figure SwissBorg also confirmed.
What SwissBorg is Doing About It
SwissBorg quickly moved to help affected users. They plan to use some of their own Solana funds to cover “a significant part” of what users lost. The company stated they are still figuring out the exact amounts but their goal is to make sure the community gets their money back.
To further recover the stolen funds, SwissBorg has brought in ethical hackers and special cybersecurity teams. Their aim is clear: “to get all users to recover their assets.” The company also made it a point to say that other Earn programs and funds in their main app were not affected by this attack. This was to reassure customers that the problem was contained.
Industry Vulnerabilities on Display
This SwissBorg incident wasn’t the only security scare on Monday. The crypto world also saw another major event. A software developer for NPM suffered a supply chain breach. This kind of attack then affected many users and projects.
Charles Guillemet, the chief technology officer for Ledger, warned people on social media about this larger attack. He told users who don’t use hardware wallets to hold off on doing transactions for a while. His message underlined how important physical security devices are for protection. A supply chain attack happens when cyber criminals sneak into a trusted part of a software’s distribution process. Instead of targeting one person, they use this weak point to spread their attack widely.
Impact on SwissBorg and the Market
This event is a big setback for SwissBorg. The company has grown in recent years, offering crypto management and digital asset investment services in Europe. The fact that the problem came from an outside partner shows how much crypto businesses rely on each other. It also highlights how risks can spread.
Experts believe that people using crypto investment platforms need to pay attention to more than just the main app’s security. They also need to consider how strong the security is for third-party services. Any outside connection can become a risk if it doesn’t have proper safety measures in place. The market is slowly recovering from recent dips. Still, SwissBorg’s loss highlights the trust problems that the industry often faces. Even with SwissBorg promising to use its own money to help users, the size of this attack again shows how vulnerable staking and yield programs can be in high-performance crypto systems.