Slope Wallet has announced a 10% bounty reward and no legal action will be taken if hackers recover funds from Solana wallets earlier this week.
In the Twitter announcement, the Solana wallet provider included a designated wallet address to which the hacker should return 90% of the funds.
It also issued a 48-hour ultimatum starting August 5, 2022 at 8:30pm UTC. In addition, the wallet provider has promised not to investigate or take legal action if funds are received during this period.
Additionally, the Slope Finance team claims to have partnered with leading blockchain intelligence firm TRM Labs and is working with law enforcement agencies. But its main priority remains the safe return of user funds.
However, the chances of a hacker accepting the deal are low. As one user pointed out, “Encryption provides anonymity to launder assets indefinitely.” So unless they get sloppy, the hacker’s identity may remain a secret.
Slope is one of the major Solana wallets affected by the recent breach. Other compromised wallets included Phantom, Solflare, and TrustWallet, among others.
Slope advises users to create new wallets
Meanwhile, the Slope Finance team is advising all users to create a new wallet with a new seed phrase and transfer their assets there. It added that users should not use the same mnemonic phrase for new wallets.
Given that wallets are supposed to be non-custodial, many in the crypto community have criticized the practice of storing user mnemonics.
inside official statement Sharing immediately after the attack, the wallet provider mentioned that “many of our own employees and founders’ wallets were drained” and that it was working to “identify and correct.”
Solana Wallet Breach Tracking to Slope
According to available information, over 8,000 Solana wallets lost funds in the attack, with the Slope wallet alone losing over $4 million.
While the root cause of the attack was not quickly discovered, the blockchain network traced the attack back to the Slope wallet.
Blockchain security firm OtterSec has discovered that hackers have access to Slope’s centralized Sentinel server, where all users’ seed phrases are stored in plain text.
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