SwissBorg, a Switzerland-based financial platform, recently disclosed that a cyberattack on one of its partners, Kiln, led to the theft of approximately $41 million in cryptocurrency. This incident, which occurred on a decentralized finance wallet held by Kiln, involved the unauthorized removal of 192,600 Solana coins. While the company confirmed reports of the breach, it stressed that its own platform’s security was not compromised. This is a crucial distinction, as it places the vulnerability on a third-party service provider rather than on SwissBorg’s core systems.
The stolen funds represent 2% of SwissBorg’s total assets and impacted only 1% of its users. Following the discovery of the breach, SwissBorg and Kiln immediately enacted an incident response plan to contain the activity. SwissBorg swiftly paused Solana staking transactions on its platform to prevent further losses. In a public statement, CEO Cyrus Fazel assured users that the company had sufficient funds to fully compensate all affected customers. He emphasized the company’s commitment to making things right and described the incident as a “small drop in the ocean of SwissBorg,” signaling its resilience and determination to overcome the setback. This proactive stance on reimbursement is a significant step in rebuilding user trust and demonstrating accountability.
The attack was traced back to Kiln’s application programming interface (API), which SwissBorg used to communicate with the Solana blockchain. Hackers exploited this API to gain unauthorized access and siphon off the funds. Kiln, a cryptocurrency infrastructure company, has since stated that it has identified the root cause of the breach. This incident highlights the inherent risks of relying on third-party services and the importance of securing every link in the technological chain. It serves as a stark reminder that a platform’s security is only as strong as its weakest external connection.
SwissBorg is not handling the aftermath alone. The company is actively collaborating with several blockchain security firms, including Chainalysis, and has sought the assistance of prominent cryptocurrency investigators like ZachXBT. The goal of this collaborative effort is to trace the stolen funds and hopefully recover them. Additionally, SwissBorg is working with law enforcement agencies to pursue the hackers. This multi-pronged approach demonstrates a serious commitment to not only protecting users but also holding the perpetrators accountable.
This incident is not an isolated event in the volatile world of cryptocurrency. It follows a similar attack on a popular Turkish platform that saw $49 million in coins stolen. These incidents are part of a broader trend of escalating cybercrime in the crypto space. According to the blockchain security firm Chainalysis, hackers stole more than $2 billion in cryptocurrency in the first half of 2025 alone. This staggering figure underscores the constant threat that exchanges and platforms face and highlights the critical need for continuous vigilance and robust security measures to protect user assets.
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