SwissBorg Suffers $41 Million Solana Theft Amid API Compromise

SwissBorg, the Swiss‑based digital asset investment platform, confirmed a significant security breach that saw the loss of 192,600 Solana (SOL) tokens, valued at approximately $41.5 million in mid‑September 2025. The incident was traced to a compromise of the Kiln API, a third‑party service integrated into SwissBorg’s Solana Earn program.

Timeline of the Breach

  • 09 Sept 2025, 20:00 UTC – On‑chain investigators ZachXBT reported the theft on Solana, noting the removal of 192,600 SOL from the platform’s treasury.
  • 09 Sept 2025, 22:01 UTC – Cointelegraph detailed that the Kiln API compromise had drained the SOL Earn program, affecting about 1 % of users and 2 % of assets.
  • 09 Sept 2025, 01:01 UTC – Cryptopanic and other outlets echoed the figure, emphasizing the scale of the loss and the specific impact on the Earn feature.
  • 09 Sept 2025, 02:29 UTC – SwissBorg’s management publicly addressed the incident, announcing plans to use its internal SOL treasury to reimburse a significant portion of affected users.
  • 09 Sept 2025, 23:30 UTC – CryptoBriefing’s report reiterated the loss, highlighting the breach’s timing and the amount stolen.

Technical Assessment

  • Vulnerability: The Kiln API, a partner provider used for staking and Earn calculations, was identified as the entry point.
  • Scope: Roughly 193,000 SOL were drained, constituting about 1 % of the user base and 2 % of the assets under management within the Earn program.
  • Impact on Platform: While the loss is significant, SwissBorg’s overall market cap remains at $272 million (as of 06 Sept 2025), suggesting a limited effect on liquidity but a serious reputational risk.

Company Response

SwissBorg’s CEO, Cyrus Fazel, emphasized a swift remedial strategy:

  • Immediate Reimbursement: Allocation of funds from the platform’s SOL treasury to cover a substantial portion of user losses.
  • Security Overhaul: Engagement with cybersecurity experts to audit all third‑party integrations, particularly APIs linked to staking and Earn features.
  • Transparency Measures: Commitment to publish a detailed incident report and to collaborate with regulatory bodies to investigate the breach’s origins.

Market Reactions

  • Price Movement: The SwissBorg token (SGB) closed at $0.2747 on 06 Sept 2025, following a steep decline from its 52‑week high of $0.4696 in December 2024.
  • Investor Sentiment: Analysts predict a short‑term correction as the market digests the breach, but anticipate a rebound once remediation steps are fully implemented and trust is restored.
  • Regulatory Scrutiny: Given the involvement of a Swiss‑registered entity, Swiss financial regulators are likely to review SwissBorg’s risk management protocols, potentially leading to new compliance requirements for crypto platforms operating in Europe.

Forward‑Looking Perspective

The incident underscores the critical importance of supply‑chain security in the crypto ecosystem. As SwissBorg moves to strengthen its API governance and to reassure investors, the broader industry is reminded that even highly regarded platforms remain vulnerable to third‑party exploits. Continuous monitoring of partner integrations and proactive incident response frameworks will be essential for mitigating future risks and maintaining stakeholder confidence.