SwissBorg loses $41M in SOL after partner API compromise affects earn program
John: Hey everyone, I’m John, a veteran writer for our crypto blog where we break down Web3, virtual currencies, and blockchain news in straightforward ways. Today, we’re diving into the recent SwissBorg hack involving a $41 million loss in Solana tokens—I’ll explain what went down, why it matters, and what it means for the crypto world, all based on trusted sources like CryptoSlate and Cointelegraph.
Lila: Hi, I’m Lila, John’s curious assistant always eager to learn more about crypto. John, for someone new to this, what exactly is SwissBorg, and how did they lose so much money in SOL?
What Exactly Happened?
John: On 2025-09-08, SwissBorg, a Swiss-based crypto platform, reported a major security breach. Hackers exploited a vulnerability in the API of their staking partner, Kiln, draining about 193,000 SOL tokens worth roughly $41 million from the Solana Earn program. This was confirmed by SwissBorg’s CEO Cyrus Fazel in a live broadcast that same day, where he assured users that the main app remained secure.
Lila: API? That sounds technical—what’s an API in this context?
John: Great question, Lila. An API, or Application Programming Interface, is like a bridge that lets different software systems talk to each other—think of it as a waiter taking your order to the kitchen. In this case, Kiln’s API was compromised, allowing unauthorized access to SwissBorg’s funds. (And no, this isn’t a menu for disaster, but it sure felt like one for the team!)
Background on SwissBorg
John: SwissBorg has been around since 2017, starting as a wealth management platform focused on crypto investments. They’ve grown to offer services like earning yields on assets through programs such as the Solana Earn, which lets users stake SOL for rewards. As of now, in 2025, they manage significant assets and emphasize user security, but this incident highlights third-party risks.
Lila: Staking? Is that like planting crypto seeds to grow more?
John: Haha, close enough! Staking is locking up your crypto to support a blockchain network, like Solana, and earning rewards in return—similar to interest on a savings account. SwissBorg partners with firms like Kiln to handle this, but as we saw on 2025-09-08, that partnership became a weak link.
The Role of APIs in Crypto and the Compromise
John: In the past, APIs have been crucial for crypto platforms to integrate services seamlessly, from trading to staking. However, this event shows how a single API flaw can lead to massive losses—attackers used the compromised Kiln API to siphon funds directly from SwissBorg’s Earn program wallet. Sources like Cointelegraph report that the stolen SOL was quickly fragmented and laundered through decentralized exchanges.
Lila: Laundered? Like cleaning dirty money?
John: Exactly— in crypto, laundering means moving stolen funds through mixers or swaps to hide their origin. This breach affected only the SOL Earn program, not the broader platform, but it underscores why APIs need robust security checks. (If APIs were superheroes, this one forgot its cape!)
Impact on Users and Recovery Plans
John: The hack impacted less than 1% of SwissBorg’s users and about 2% of their total assets under management, according to updates from CryptoNews and The Block. As of 2025-09-09, the company has pledged to reimburse affected users using their SOL treasury, covering a significant portion of losses. They’re also working with white-hat hackers for recovery efforts, ensuring daily operations continue uninterrupted.
Lila: White-hat hackers? Are there good guys and bad guys in hacking?
John: Yes! White-hat hackers are ethical experts who help recover funds or test security, unlike the black-hat ones behind the theft. SwissBorg’s strong financial position means they can handle this without broader disruptions, and CEO Fazel has committed to full compensation where possible.
Lessons Learned and Safeguards
John: This incident reminds us of past crypto hacks, like the Ronin Bridge exploit in 2022, where third-party vulnerabilities led to huge losses. To protect against similar issues, platforms should audit partners regularly and use multi-signature wallets. Here’s a quick list of safeguards users can consider:
- Enable two-factor authentication (2FA) on all accounts for an extra security layer.
- Diversify holdings across platforms to avoid putting all eggs in one basket.
- Stay updated via official channels, like SwissBorg’s blog or apps, for real-time alerts.
- Use hardware wallets for personal storage, keeping keys offline and safe.
Lila: That list is super helpful! So, is this a sign that crypto is still too risky?
John: Not necessarily—crypto has matured with better regulations, but risks remain. SwissBorg’s quick response shows the industry learning from events like this, emphasizing third-party oversight. (No humor here; security is serious business.)
Looking Ahead
John: Moving forward, SwissBorg plans to enhance API security and partner vetting, as per their 2025-09-08 statements. Broader crypto trends point to more decentralized and audited systems to prevent such breaches. By late 2025, we might see regulatory pushes for stricter API standards in Europe, where SwissBorg operates.
Lila: Will this affect Solana’s reputation too?
John: Solana itself wasn’t directly hacked—it was the partner API—but incidents like this can spotlight network security. Looking ahead, platforms like SwissBorg are likely to rebound stronger, focusing on user trust. (Fingers crossed for smoother sailing in crypto waters!)
John: Wrapping this up, the SwissBorg hack is a stark reminder of crypto’s vulnerabilities, but their swift reimbursement pledge shows resilience in the space. Stay informed and cautious, folks—crypto evolves fast, and knowledge is your best defense. Thanks for joining us!
Lila: Great chat, John! My takeaway: Always check the bridges (like APIs) before crossing in crypto—safety first for a smoother journey.
This article was created using the original article below and verified real-time sources:
- SwissBorg loses $41M in SOL after partner API compromise affects earn program
- SwissBorg hacked for $41M SOL after third-party API compromise
- SwissBorg crypto platform robbed of over $40 million in Solana
- SwissBorg Hit by $41.5M SOL Hack After API Partner Breach