SwissBorg has confirmed a serious breach that led to the loss of around $41 million worth of Solana. The issue came from its SOL Earn product, where users lock up their SOL to earn rewards. The funds were taken from the platform through a compromised API tied to a third-party staking provider. SwissBorg says about one percent of user accounts were directly impacted, but the total amount lost adds up to about two percent of the company’s overall assets.
The breach wasn’t due to any failure in SwissBorg’s core systems. Instead, the attackers found a way in through Kiln, a third-party provider responsible for staking infrastructure. The attackers used Kiln’s API to access and move 193,000 SOL. Since Kiln operates behind the scenes, the activity slipped through without triggering internal alarms at SwissBorg.
@zachxbt : @swissborg was drained 192.6K SOL ($41.5M) a few hours ago
theft addresshttps://t.co/cQPbuVAstb pic.twitter.com/52IRk9jcWq
— BlockFlow (@BlockFlow_News) September 8, 2025
The company was quick to respond. It said it would fully reimburse all affected users using its own Solana holdings. A live update from SwissBorg’s CEO laid out the facts, confirming that no other parts of the platform were touched. Services are still running normally, and the company is treating this as a top priority.
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SwissBorg has brought in forensic experts to trace the stolen funds. A number of crypto exchanges have already frozen suspicious transactions tied to the attack. The team is also working with white-hat hackers to monitor wallet movements and try to track where the money is headed next.
This situation highlights how external integrations can become weak points, even if a company’s own systems are secure. The trust placed in backend providers like Kiln means vulnerabilities in their code can affect everyone upstream. For crypto platforms, it’s a reminder that the whole stack needs constant oversight.
Despite the size of the loss, SwissBorg insists the company is financially sound. Using the funds to cover the stolen SOL will not impact other services. From a user perspective, there’s no indication of wider fallout. That level of stability, especially so soon after a breach, helps keep panic at bay.
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Some users were quick to thank SwissBorg for taking responsibility and acting fast. Others voiced concern about how deep the integration with external providers goes. There’s clearly a trust issue when breaches happen in places most users don’t even know exist. But overall, the transparency in the response has helped calm some nerves.
SwissBorg says it will revisit its third-party relationships and tighten security protocols around API access. The company is also expected to update its due diligence processes before integrating new services in the future. How they handle this next phase may shape how other firms in the space look at their own risk exposure going forward.
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The post SwissBorg Loses $41 Million in Solana After Partner API Exploit appeared first on 99Bitcoins.
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