Why FTX CEO Sam Bankman-Fried Is Supporting Solana Amidst Several Hacks?

4 August 2022

in Solano

Reading Time: 3 mins read

Solana users felt vulnerable and trembled with fear of losing tokens since the time Solana wallets were hit. Coming forward to elucidate what actually happened, the platform now released some assertions on Twitter.

With the skepticism going around the Solana wallets being hit, users had started believing in a number of different stories. Few users stated most Solana wallets were vulnerable while few claimed to lose USDC on Solana and even Ethereum too.

With over 8000 Solana wallets estimated to have been hit, SOL tokens worth $7 million were drained. At first glance, it looked like Solana’s Phantom online wallets had been compromised. But the responsive investigation by Solana revealed that it was the Slope’s mobile applications that were actually hit.

After an investigation by developers, ecosystem teams, and security auditors, it appears affected addresses were at one point created, imported, or used in Slope mobile wallet applications. 1/2

— Solana Status (@SolanaStatus) August 3, 2022

Solana contradicted and rubbished the initial claims of several Solana and even non-Solana wallets being drained out. It was also clarified that the Hack can be associated with just one crypto wallet on Solana.

FTX Chief Sam Bankman-Fried Backs Solana

this is a good example of how something can be under-rated

a random dAPP gets compromised and it’s blamed on the underlying blockchain. (To be clear, no core or internal infra had any issues! It was just a single third-party application some people used…)

in other news… https://t.co/je6r9v4jmj pic.twitter.com/bMJHRULgJB

— SBF (@SBF_FTX) August 3, 2022

FTX chief Sam Bankman-Fried came forward to defend the Solana platforms. SBF mentioned that Solana platforms don’t stand responsible for the hack, neither the core nor internal infra was compromised. Rather, it was a single third-party application used by some notorious markets to break into Solana wallets.

Coincidently, with the Nomad Hack happening just before the Solana attack, SBF drew a comparison between the two.

During his interview with the Fortune publication, SBF exclaimed that Solana is the most under-rated cryptocurrency right now. SBF explained that Solana has successfully secured its platform by working through 2/3rd of its technological issues.

The performance came through even after all the bad PR Solana had been getting. SBF expressed his confidence in Solana saying ‘I am sure it will get through the remaining 1/3rd’

While being interviewed, SBF said:

Any blockchain would’ve broken if it’d tried to do what Solana had done. This was a way for it to figure out what needed to be refined. Pushing the boundaries to see what breaks is what other blockchains “should be doing”.