European crypto platform SwissBorg to reimburse users after $41 million theft

The SwissBorg platform said about $41 million worth of cryptocurrency was stolen during a cyber incident affecting a partner company this week. 

The Switzerland-based company confirmed industry reports of an incident but said its platform was not hacked. CEO Cyrus Fazel explained that an external decentralized finance wallet held by a partner was breached on Monday. 

The stolen funds represent 2% of SwissBorg’s total assets, according to Fazel, and about 1% of users had cryptocurrency stolen. In total, 192,600 Solana (SOL) coins were stolen — which is worth more than $41 million as of Tuesday afternoon. 

In an update on Tuesday, the company pledged to make all affected customers whole and is still investigating the incident. 

SwissBorg officials said they are working with several blockchain security firms to investigate the incident and thanked Chainalysis as well as cryptocurrency investigator ZachXBT and others for their assistance in addressing the issue. 

The partner company that was attacked, Kiln, released its own statement confirming that it was suffering from a cyberattack and said the root cause has been discovered. Kiln is a cryptocurrency infrastructure company. 

“SwissBorg and Kiln are investigating an incident that may have involved unauthorized access to a wallet used for staking operations. The incident resulted in Solana funds being improperly removed from the wallet used for staking operations,” Kiln said in a blog post. 

“Upon detection, SwissBorg and Kiln immediately activated an incident response plan, contained the activity, and engaged our security partners. SwissBorg has paused Solana staking transactions on the platform to ensure no other customers are impacted.”

Experts explained that the attack was sourced back to Kiln’s application programming interface (API) — which is used by SwissBorg to communicate with Solana. The hackers breached the API and stole funds through it. 

Swissborg said it is also working with law enforcement on the incident and is trying to recover the stolen funds. 

Fazel published a video about the incident, telling users that the platform has dealt with multiple cyberattacks in the past. 

“We have all the agencies around the world that are really helping us to make sure that we are looking at every transaction. Some of the transactions actually have been blocked. All the different exchanges around the world are helping us,” he said. 

“We have enough funds, and we'll find a compensation that will match your expectation. We are doing everything in our effort to make sure that this incident, as big as it is, will eventually be a small drop in the ocean of SwissBorg.”

The attack comes less than a month after a popular cryptocurrency platform in Turkey temporarily suspended deposits and withdrawals following the theft of $49 million worth of coins. 

Overall, more than $2 billion in cryptocurrency was stolen by hackers in the first half of 2025, according to the blockchain security firm Chainalysis.