August 5, 2022: -According to blockchain analytics firm Elliptic, nearly 8,000 digital wallets have drained just over $5.2 million in digital coins, including Solana’s sol token and USD Coin (USDC). The Twitter account Solana Status approved the attack, which states that as of Wednesday morning, about 7,767 wallets have been influenced by the exploit. Elliptic’s judgment is higher at 7,936 wallets.

Solana’s sol token, one of the biggest cryptocurrencies following bitcoin and ether, failed almost 8% in the initial two hours after the hack was initially detected, according to data from CoinMarketCap. It’s down about 1%, while trading volume is nearly 105% in the earlier 24 hours.

On Tuesday, numerous users started reporting that assets held in “hot” wallets, that is, internet-connected addresses, including Phantom, Slope, and Trust Wallet, were opened of funds.

Phantom said on Twitter that it’s exploring the “reported vulnerability in the Solana ecosystem” and doesn’t believe it’s a Phantom-specific issue. Blockchain audit company OtterSec tweeted that the hack has affected multiple wallets “across a wide variety of platforms.”

Elliptic chief scientist Tom Robinson told CNBC the root cause of the breach is still unclear, but “it appears to be because of a flaw in certain wallet software, softly in the Solana blockchain itself.” OtterSec added that the actual owners signed the transactions, “suggesting some way of private key compromise.” A private key is a secure code that grants the owner entrance to their crypto holdings.

The assailant’s identity is strange, as is the root cause of the exploit. The violation is ongoing.

“Engineers from multiple ecosystems, with the help of several security firms, are investigating dead wallets on Solana,” according to Solana Status. This Twitter performance shares updates for the whole Solana network.

The Solana network encourages users to use hardware wallets since there’s no evidence those have been affected.

“Do not reuse your seed phrase on a hardware wallet create a new seed phrase. Wallets spent should be treated as compromised and abandoned,” reads one tweet. Seed terms are a collection of random words generated by a crypto wallet when it is first set up, granting access to the wallet.

A private key is impressive and links a user to their blockchain address. A seed phrase is a fingerprint of a user’s blockchain assets used as a backup if a crypto wallet lives failed.

The happening comes after the $200 million hack of the Nomad blockchain bridge. It’s the present crisis to seize the crypto market in recent weeks.