On Monday, a hack at Kiln resulted in the loss of $41 million worth of SOL on the SwissBorg cryptocurrency exchange. What do we know about this incident?
SwissBorg loses $41 million after a hack at Kiln
On Monday, the SwissBorg team reported a security breach that led to the theft of approximately $41 million in SOL. The hack impacted Solana’s staking module via a strategy implemented in partnership with Kiln. A second staking strategy, in partnership with Kyros, was not affected.
In a brief announcement, Laszlo Szabo, CEO and co-founder of Kiln, discussed the incident, which “may have involved unauthorized access to a wallet,” and the measures that were taken:
We were alerted earlier today, September 8, 2025. This incident resulted in the unjustified withdrawal of Solana funds from the wallet used for staking operations. Upon detection, SwissBorg and Kiln immediately activated a response plan, controlled the activity, and contacted our security partners. SwissBorg has suspended Solana staking transactions on the platform to ensure that no other customers are impacted.”
Despite the amounts involved, Cyrus Fazel, CEO and co-founder of SwissBorg, states that “SwissBorg users will not suffer any losses” and that any shortfall will be covered. In total, the $41 million in question represents 2% of SwissBorg’s assets under management, and less than 1% of users are believed to have been affected.
Withdrawals from the SOL Earn product have been paused on the exchange, but no other strategies have been impacted.
Kiln’s website provides real-time updates on the latest announcements related to the incident. At the time of writing, several services remain disabled as a precautionary measure:
Although we still have to wait for more information, at least two things are certain at this point:
- The NPM module vulnerability (which we discussed yesterday) is not the cause of the incident;
- Kiln validator operations on Solana are not affected and continue to generate rewards.
In parallel with this incident, SwissBorg’s BORG token is trading at $0.27, down 2.2% over 24 hours, with a market capitalization of $265.7 million.
