Step Finance Treasury Breach Results in $27 Million SOL Loss, STEP Token Plummets Over 90 %
February 1 2026 – Cointelegraph
Step Finance, the Solana‑focused decentralized‑finance portfolio manager, announced that several of its treasury wallets were compromised during Asian‑Pacific business hours earlier today. The intrusion, which the platform described as “sophisticated” and executed via a “well‑known attack vector,” forced the unstaking and transfer of roughly 261,854 SOL – an estimated $27 million at current market rates – from addresses controlled by the company.
What happened
- Security incident: The breach was disclosed in an X post by the Step Finance team, where they confirmed the loss and said remediation steps are already underway. No further details have been released concerning the method of entry, whether it involved a smart‑contract vulnerability, compromised private keys, or internal access lapses.
- On‑chain evidence: Blockchain analytics firm CertiK traced the movement of the SOL tokens, showing the funds were quickly moved out of Step‑controlled wallets. The exact final destination of the assets has not been publicly identified.
- User funds: At present, Step Finance has not indicated that any user‑deposited assets were affected. The loss appears to be confined to protocol‑owned treasury holdings.
Market reaction
The immediate fallout was a dramatic sell‑off of STEP, the platform’s governance token. Trading data from CoinGecko shows the token down to roughly $0.00158, representing a 93 % decline in the past 24 hours and erasing more than 90 % of its market value. The price slump reflects both the magnitude of the financial hit and investor concerns over the project’s security posture.
About Step Finance
Founded in 2021, Step Finance markets itself as a “front page for Solana,” aggregating data from multiple DeFi protocols into a single dashboard. The company also runs the Solana‑focused media outlet SolanaFloor and sponsors the annual Solana Crossroads conference. In late 2024, Step acquired the former Moose Capital, rebranding it as Remora Markets with the aim of delivering tokenized equity trading on Solana. The STEP token is integral to the platform’s governance model and incentive mechanisms.
Broader context: post‑hack recovery in crypto
Industry research suggests that a majority of blockchain projects that suffer a major security breach fail to fully rebound. A recent study cited by Cointelegraph indicates that nearly 80 % of hacked projects never regain their pre‑incident market position, with the loss of trust often outweighing the direct financial damage.
- Crisis response: Immunefi CEO Mitchell Amador warns that many teams are ill‑prepared for security incidents, leading to delayed decisions and poor communication during the crucial hours after an attack. This hesitation can exacerbate losses and further erode community confidence.
- Reputational impact: Alex Katz, CEO of security firm Kerberus, notes that even when technical vulnerabilities are patched, the reputational fallout can be lasting. Users typically withdraw liquidity, and the brand’s credibility may suffer long after the hack is resolved.
Key takeaways
| Takeaway | Implication |
|---|---|
| Significant treasury loss – Approximately $27 M in SOL was moved out of Step Finance wallets. | Immediate reduction in the project’s on‑chain capital and operational flexibility. |
| STEP token collapse – Over 90 % price drop, trading near historic lows. | Market sentiment sharply negative; potential for speculative volatility as investors react. |
| Limited information on attack vector – No public details on how the breach occurred. | Heightened uncertainty for stakeholders; calls for greater transparency and security audits. |
| User funds reportedly safe (so far) – No confirmed impact on third‑party assets. | May limit immediate user exodus, but trust remains fragile. |
| Historical difficulty in recovering from hacks – Most crypto projects struggle to regain traction. | Step Finance will need a robust remediation plan, transparent communication, and possibly external security partnerships to rebuild confidence. |
Outlook
Step Finance has pledged to continue remedial actions, though the timeline and scope of recovery remain unclear. The incident underscores the growing need for rigorous security practices within DeFi infrastructure, especially on high‑throughput chains like Solana. As the ecosystem watches how Step navigates this crisis, the episode serves as a cautionary tale for other projects handling sizable treasury assets.
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Source: https://cointelegraph.com/news/step-finance-treasury-breach-solana-step-token-crash?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
