SwissBorg Loses $41 Million in Solana After Partner API Exploit

[Ben Graham]

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.

Breach Traced to Staking Partner Kiln

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

SwissBorg Covers Losses With Its Own Funds

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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Investigations Are Already Underway

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.

Solana

Price

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SOL

$115.18B

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Outsourcing Comes With Its Own Risks

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.

Platform Operations Remain Stable

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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Users React With a Mix of Relief and Concern

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.

Focus Now Shifts to Prevention

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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Key Takeaways

• SwissBorg lost $41 million in Solana due to an API exploit linked to its staking partner Kiln, not from its own core systems.
• Roughly one percent of user accounts were directly affected, and SwissBorg has promised full reimbursement using its own funds.
• The exploit allowed attackers to move 193,000 SOL by compromising Kiln’s backend API, bypassing SwissBorg’s internal alerts.
• SwissBorg is working with forensic teams and exchanges to trace the stolen funds and monitor wallet activity tied to the breach.
• The incident highlights the risk of third-party integrations and has pushed SwissBorg to review its API security and vendor relationships.

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