SwissBorg Hit by $41M Solana Hack, Promises Full User Repayment

Highlights:

• SwissBorg lost $41M after hackers drained 192,600 SOL through Kiln’s API.
• The company promised to fully reimburse all affected users from treasury reserves.
• Experts and exchanges are actively tracing the stolen funds across blockchain wallets.

SwissBorg, a Switzerland-based crypto wealth management firm, confirmed a major breach tied to its staking partner Kiln. Hackers exploited the API of the Solana Earn program, stealing around 192,600 SOL tokens worth about $41 million. They later transferred the stolen assets to a new wallet, which Solscan has labeled as the “SwissBorg Exploiter.”

SOL Earn Incident & SwissBorg Recovery Plan

A partner API was compromised, impacting our SOL Earn Program (~193k SOL, <1% of users).
Rest assured, the SwissBorg app remains fully secure and all other funds in Earn programs are 100% safe.

Our recovery plan.
Immediate Actions…

— SwissBorg (@swissborg) September 8, 2025

SwissBorg Breach Through Kiln, Company Ensures User Compensation

CEO Cyrus Fazel addressed the incident during a September 8 live broadcast. He confirmed that SwissBorg’s main application and other Earn products remain secure. He assured users that the company will fully reimburse all affected investors. “SwissBorg has not been hacked. There is an external attack from a provider that was unfortunately compromised,” he added.

The breach originated from Kiln, a staking infrastructure provider powering yield services on blockchains such as Solana and Ethereum. Hackers targeted the API, which works like a bridge connecting two systems. In SwissBorg’s case, its app depended on Kiln’s API to communicate with the Solana staking network. Once the attackers compromised this bridge, they were able to change requests and drain funds from the program. SwissBorg emphasized to its users that the firm’s financial position remains strong and that everyday operations continue unaffected.

Fazel highlighted that the stolen amount represents nearly 2% of total assets under management. He noted that the company promptly used treasury reserves to cover the losses. Fazel assured that SwissBorg has enough resources to provide full reimbursement without affecting its stability.

SwissBorg https://t.co/xMSBRpUrJS

— SwissBorg (@swissborg) September 8, 2025

SwissBorg Teams Up with Security Experts and Exchanges to Track Stolen Funds

SwissBorg brought in white-hat hackers and security experts to recover the stolen funds. They are working with exchanges to trace the movements of the funds. Several exchanges have already blocked transactions tied to the hack and prevented thieves from cashing out part of the stolen tokens. Fazel said that groups like Fireblocks, the Solana Foundation, and blockchain investigators are helping track the stolen funds across many wallets.

He admitted that while the company applies strict due diligence in choosing partners, external weaknesses can still expose users to advanced attacks. Fazel called the incident a learning experience and recognized the emotional toll it placed on those affected. He stated, “It’s never easy to be like, oh shit, I just lost some of your funds. But it’s in these times that we realize who has our trusted community.” Fazel assured users they would get regular updates during the recovery process and stressed that SwissBorg will remain completely transparent about all efforts to recover the stolen funds. Looking ahead, the company plans to add stronger security layers and work closely with law enforcement agencies across the globe to prevent similar breaches in the future.