Protecting Cryptocurrency Assets Following the Solana Wallet Hack

The incident raised many concerns about the security provided by both the Solana network and the “hot” wallets, which are quite popular with the typical crypto investor, with cryptocurrency assets worth over $8 million from approximately 8,000 people.

Cause of Solana attack unknown

While Solana’s Twitter account was quick to point out that the attack was not caused by a software compromise on the network, he also said his engineering team was working diligently with security researchers and experts. ecosystem teams to determine the cause of this wallet attack.

According to preliminary investigations, the hardware wallets used by Slope were immune to this issue as they only affected the Slope wallet on the Solana ecosystem.

According to Solana, the affected wallet addresses had their private key information sent to an application monitoring service at some point when they were generated, imported, or used in Slope mobile wallet programs.

Solana has already urged investors affected by the attack to ditch affected wallets as they could still be compromised even after wallet approvals are revoked. Although the exact modus operandi used is still unknown, crypto industry leaders pointed out that the suspicious transactions were properly signed, further indicating that it could be a blockchain attack. supply with a particular focus on users of “hot” Slope wallets.

Apps and devices can be hacked

Applications (software) and devices can be hacked. Since private keys are stored in app and device wallets, hackers can access them and steal your cryptocurrency and that sums up the Solana hack.

And if your wallet has been compromised, it is essential that you transfer all existing funds from your compromised wallet to another wallet.

Hackers will immediately wipe the funds from your account, but if you’re lucky and they haven’t done so yet, it’s time for investors to act immediately.

Investors should opt for cold wallets

Most hacks hit hot wallets, so investors should opt for cold wallets instead

Although investors may need it online for trading, they should keep what they need for the short term and store most of it offline. A cold crypto wallet, which is similar in size to a USB device, contains a private key that can be used to access your funds. Investors can also define their own private keys.

Investors should also use Multi-Factor Authentication (MFA) as it creates a layered defense on their account with independent credentials based on password, security token and/or biometric data.

Phishing is another danger and to avoid phishing, investors should never log into their cryptocurrency exchange unless they are sure they are on the right site.

Do not rely on SMS, emails

Also, investors should not trust text messages, emails or chats that ask for your personal information. Avoiding public WiFi is also a great idea, as is updating your software from time to time. Regularly changing passwords is also fine. Change the password regularly and use a password manager like LastPass or 1Password.”

As Solana continues to work with Slope Finance in conjunction with their partners OtterSec and SlowMist to restore normality, this incident once again serves to highlight the vulnerability of “hot” wallets to cyberattacks, despite the faster transaction times than they offer.

Comprising the entire collection of web, mobile, and desktop wallets available today, “hot” wallets should be used in conjunction with “cold” or hardware wallets to strike the perfect balance of speed, functionality, and security.

For those actively trading crypto tokens and other crypto assets, it is recommended to hold trading funds in a “hot” wallet, while the bulk of their crypto holdings remain safe in a “cold” wallet or material.

Stealing hardware wallets almost impossible

Designed to be hack-proof, hardware wallets must be connected to a computer or accessible via Bluetooth and transaction signing is done “in-device”. Since a user’s private keys never leave the device, stealing funds from a hardware wallet is an almost impossible task for malicious cyber entities.

Costing between $50 and a few hundred dollars, the security offered by these hardware wallets more than offsets the one-time costs involved and is highly recommended for all crypto investors.

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About Mariel Baker

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