Another Blow to Solana DeFi as 260,000 SOL Vanish, Operations Halted

▲ Solana (SOL)

Step Finance, a Solana-based DeFi platform, has officially announced a full shutdown of operations after suffering a hacking loss of approximately $29 million.

According to investment media outlet FXStreet on February 24 (local time), Step Finance, a decentralized finance (DeFi) platform built on the Solana (SOL) blockchain, stated that it would immediately cease all operations following the breach of its treasury wallet. The move also affects its news and data analytics platform SolanaFloor and tokenized stock trading platform Remora Markets.

Step Finance explained that a security breach occurred in its treasury wallet on January 31, resulting in the theft of around 261,854 SOL. At the time, the losses were valued at approximately $29 million. The company said it explored all possible options, including fundraising and potential mergers and acquisitions, but was unable to find a realistic solution to overcome the financial damage.

The project stated that it is pursuing a snapshot-based buyback program for STEP token holders based on balances prior to the hack. Compensation procedures will be conducted according to historical balances. The team also added that it is preparing a separate redemption process for Remora token holders. Remora confirmed that the token is fully backed on a 1:1 basis and that holders will be able to redeem it for USDC.

Following the announcement, the STEP token plunged 37%, bringing its cumulative decline to nearly 97%. The incident has once again highlighted security risks facing DeFi projects within the Solana ecosystem.

The complete shutdown of Step Finance is being viewed as more than just an isolated project failure, underscoring the importance of security and financial stability in the increasingly volatile cryptocurrency market. In particular, the company’s inability to secure new funding after the hack, leading directly to a halt in operations, stands as an example of the structural vulnerabilities faced by small- and mid-sized DeFi projects.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses resulting from reliance on this content. The information should be interpreted for informational purposes only.*