SwissBorg, a Switzerland-based crypto wealth management platform, has confirmed a major security breach that saw hackers steal around 193,000 Solana (SOL) tokens worth $41 million. The attack targeted Kiln, a staking infrastructure provider partnered with SwissBorg, after criminals exploited vulnerabilities in Kiln’s API.

The exploit specifically affected SwissBorg’s Solana Earn program, where users deposit SOL to earn staking rewards. According to CEO Cyrus Fazel, only about 1% of customers and 2% of the company’s assets were impacted, while the core app and other Earn products remained unaffected. Fazel described the incident as “a bad day” but stressed that it poses no existential risk to the company.

API attacks, like the one used in this case, manipulate the communication channels between systems. By breaching Kiln’s API, hackers redirected staking transactions and siphoned off funds to a wallet now labeled on Solscan as the “SwissBorg Exploiter.”

SwissBorg assured users it remains financially stable and pledged to fully reimburse those affected. “With the current treasury we have, we could already do that,” the company stated. Fazel emphasized that SwissBorg is working closely with international agencies, exchanges, and white-hat hackers to track the stolen funds, some of which have already been blocked.

The incident underscores the risks facing crypto platforms that rely on third-party infrastructure. While SwissBorg aims to simplify staking for retail investors by partnering with providers like Kiln, the breach highlights vulnerabilities in such integrations.

Despite the setback, SwissBorg insists operations will continue as normal, calling the event a hard lesson but not a fatal blow. Investigations remain ongoing, and the company is contacting affected users directly.