SwissBorg has revealed that hackers drained nearly $41 million worth of Solana (SOL) tokens from its Earn program after exploiting a vulnerability in Kiln’s staking API.
The Switzerland-based crypto wealth management firm confirmed the incident on X, clarifying that the breach was isolated to its Solana Earn product. Other services, including its main app and additional Earn programs, were unaffected.
The stolen funds amount to roughly 193,000 SOL, according to blockchain records. The exploit highlights once again the vulnerabilities that arise when relying on third-party staking infrastructure.
API Weakness at the Center
The source of the breach was traced back to Kiln, SwissBorg’s staking partner that supports yield-generating products on networks such as Solana and Ethereum.
An API, or application programming interface, functions as the bridge that connects two systems. By exploiting this communication channel, attackers were able to manipulate requests and redirect funds away from user deposits.
Blockchain data later flagged the compromised wallet on Solscan as the “SwissBorg Exploiter,” cautioning users not to interact with it.
Company Response and User Protection
Despite the large sum lost, SwissBorg stressed that the hack has not threatened its financial position or overall operations.
CEO Cyrus Fazel addressed users directly during an X Space shortly after the news broke. He confirmed the breach only affected Solana deposits in the Earn program, which accounts for just 1% of the company’s user base and around 2% of its assets.
“It’s a big amount of money, but it doesn’t put SwissBorg at risk,” a spokesperson added.
SwissBorg assured customers that affected deposits would be reimbursed, saying that its treasury could cover losses immediately if necessary. The company is also collaborating with global authorities, crypto exchanges, and white-hat hackers to track down the attackers, and has already succeeded in blocking some related transactions.
A Learning Experience for SwissBorg
Calling the incident “a bad day for SwissBorg,” Fazel said it would ultimately serve as a critical learning moment for the platform.
The Earn program had been designed to simplify staking for retail investors, letting them earn rewards without setting up validators or engaging with complex DeFi protocols. By outsourcing infrastructure to Kiln, SwissBorg streamlined access but also inherited new risks.
The company now faces the challenge of tightening security while maintaining accessibility for users seeking passive income through staking.
