SwissBorg CEO Assures Users After SOL Exploit, Pledges Full Coverage

SwissBorg has confirmed that a security exploit affected its SOL Earn program. This resulted in the theft of around 192,600 SOL, valued at roughly $41 million. The incident occurred on September 8. It was traced to a vulnerability in a counterparty’s DeFi wallet. Importantly, the SwissBorg CEO emphasized that this was not a breach of its own platform. The exploit limited the damage to the specific SOL Earn strategy. According to the company, the exploit represented only 2% of SwissBorg’s total assets. This impacted fewer than 1% of its users. All other Earn programs, as well as user balances within the SwissBorg app, remain fully secure.

CEO Cyrus Fazel: Users Will Not Bear Losses

Cyrus Fazel, cofounder and CEO of SwissBorg, addressed the community directly on X to reassure users. He pledged that no member of the SwissBorg community would face losses as a result of the exploit. Any gap between recovered and lost funds will be fully covered by the company. “This was not a breach of the SwissBorg platform,” Fazel stated. “It was an exploit of an external DeFi wallet operated by a counterparty. User funds are secure, and only the SOL Earn strategy has been affected.” He added that SwissBorg teams are working “tirelessly” to investigate the incident, recover funds, and ensure user protection.

Immediate Recovery Actions

In a detailed statement, SwissBorg confirmed it has already allocated part of its SOL treasury to cover losses. This step is designed to ensure that the users recover a significant portion of their balances quickly. While recovery efforts continue. The company has also suspended SOL Earn redemptions temporarily as a precaution. Other Earn strategies remain fully active, and balances in the app remain unchanged. SwissBorg has engaged with security partners. Including white-hat hackers, blockchain forensic firms, and law enforcement. Among those credited for immediate assistance were SEAL 911, ZachXBT, Chainalysis, Fireblocks, and Kiln Finance.

Contained Impact on Operations

Despite the size of the stolen assets. SwissBorg CEO insists the incident has not weakened its financial health or day-to-day operations. The company underlined that the exploit affected only one counterparty wallet. It did not affect the wider platform. “Our app is secure, other Earn programs are secure, and SwissBorg continues to operate from a position of strength,” the company noted. For users, this means daily operations on the platform remain unaffected. Apart from temporary restrictions on the SOL Earn product.

Broader Market Context

The incident comes at a time when exploits across DeFi platforms continue to highlight vulnerabilities in third-party integrations. By limiting the damage to less than 1% of users and guaranteeing full compensation. SwissBorg is aiming to distinguish itself from peers that have sometimes struggled to cover similar losses. The company has also pointed out this exploit. While significant in dollar terms, it represents only a small portion of its overall balance sheet. This, it argues, ensures it can move forward without disruption.

Looking Ahead

SwissBorg has pledged to publish a full incident report once investigations are complete. The report will include a detailed breakdown of how the exploit occurred. That includes what funds the team recovered and what new safeguards they will implement. Fazel has also promised regular updates across SwissBorg’s official channels, stressing transparency as a priority. The team scheduled a live community call on YouTube to allow users to raise questions and hear directly from leadership.

SwissBorg CEO expressed gratitude to its community. “With the strength of our partners and our community, we are confident we will emerge stronger, safer, and more resilient,” Fazel said. Currently, SwissBorg’s key message is clear: they have protected user balances, have not affected other Earn programs, and will cover all losses. The exploit may mark one of the largest incidents in the company’s history. But SwissBorg’s swift response signals its intent to prioritize security and user trust above all.