SwissBorg users got some unsettling news this week. The crypto platform confirmed a security exploit hit its SOL Earn program, leading to the theft of about 192,600 SOL. That’s roughly $41 million. The incident happened on September 8.
But here’s the important part: SwissBorg’s CEO, Cyrus Fazel, was quick to clarify this wasn’t a breach of their own systems. It was traced back to a vulnerability in a DeFi wallet managed by an external partner. So the platform itself? Still secure.
Users Won’t Lose Money, CEO Says
Fazel took to X to address the community directly. He promised that no user would be left holding the bag. Any shortfall between what was stolen and what gets recovered will be covered by the company. That’s a big deal.
“This was not a breach of the SwissBorg platform,” he stressed. “User funds are secure. Only the SOL Earn strategy has been affected.” He mentioned teams are working around the clock on the investigation and recovery. It’s a messy situation, but they’re trying to handle it right.
What’s Happening Now
The company has already moved part of its own SOL treasury to start covering user losses. That should help people get a good chunk of their balance back quickly. SOL Earn redemptions are paused for now, just as a precaution. Everything else in the app is running like normal.
They’ve also brought in outside help. We’re talking white-hat hackers, blockchain analysts, and even law enforcement. Groups like SEAL 911 and ZachXBT were named as already lending a hand. It’s a full-court press.
Is SwissBorg Still Stable?
Even with $41 million gone, the company says it’s not a major hit to their overall health. The exploit touched less than 1% of users and only about 2% of total assets. Their other Earn programs are untouched. Daily operations aren’t really affected.
It’s a reminder, though, of how tricky DeFi can be. Third-party integrations keep causing headaches across the industry. SwissBorg seems to be handling it better than some—by committing to make users whole, no questions asked.
What Comes Next
A full report is coming once the investigation wraps up. They’ve promised to break down exactly how it happened, what was recovered, and what new safety measures will be put in place. There’s a community call scheduled too, so users can ask questions directly.
Fazel ended with thanks to the community and partners. He said they’ll come out of this “stronger, safer, and more resilient.” For now, the message is clear: user funds are protected, losses will be covered, and they’re being as open as they can be. It’s a serious incident, but the response feels… human.
