Solv Protocol said an exploit hit one of its token vaults and led to the loss of 38.05 SolvBTC, worth about $2.7 million. The Bitcoin DeFi platform said fewer than 10 users were affected. It also said it would cover the losses.
The team disclosed the Solv Protocol exploit in a post on X on Thursday. At the same time, it offered the attacker a 10% crypto bounty in exchange for returning the stolen funds. The project added that it had already taken steps to stop the same issue from happening again.
Solv also said it is investigating the smart contract exploit with Hypernative Labs, SlowMist, and CertiK. In addition, it shared an Ethereum wallet address and asked the attacker to respond onchain.
SolvBTC hack hits token vault linked to Bitcoin DeFi activity
Solv Protocol lets users deposit Bitcoin and receive SolvBTC, a token pegged to BTC. Users can then use that asset across blockchains for lending, borrowing, or staking. According to the project, it holds 24,226 Bitcoin, worth more than $1.7 billion.
The team did not confirm the exact cause of the token vault exploit in its first statement. However, two crypto security researchers said the attacker used a flaw in one of Solv’s smart contracts. That flaw allegedly let the attacker mint more tokens than the system should have allowed.
After that, the attacker swapped the freely minted tokens for a little over 38 SolvBTC. That amount was then drained from the affected vault. So, the SolvBTC hack appears to have started with excessive token minting and ended with the withdrawal of Bitcoin-pegged assets.
Smart contract exploit used repeated minting in Solv Protocol exploit
Chris Dior, co-founder of CD Security, said the attacker used the vulnerability 22 times. According to his account, the hacker repeatedly minted large amounts of a token tied to the protocol. Then the attacker swapped those tokens for more than 38 SolvBTC.
Another crypto researcher, known as Pyro, described the incident as a reentrancy attack. In simple terms, a reentrancy attack happens when a smart contract allows repeated calls before it updates balances correctly. As a result, an attacker can use that delay to move value out of the protocol.
This type of DeFi security issue has appeared in several protocols over the years. In this case, researchers said the flaw allowed repeated minting and token swaps before the contract could stop the process. That made the smart contract exploit effective enough to drain the vault.
Crypto bounty follows Solv Protocol exploit as investigation continues
After the attack, Solv Protocol offered the hacker a 10% crypto bounty. The project said the offer was meant to recover the remaining funds. This kind of bounty has become common after some DeFi security incidents.
At the same time, Solv said it would cover the full loss of 38.05 SolvBTC for affected users. It also said fewer than 10 users were impacted. That detail suggests the token vault exploit was limited to one part of the platform.
However, the attacker had not sent any onchain message to the address shared by Solv Protocol, according to Etherscan. So, there was no visible public response from the hacker at the time of publication.
DeFi security firms join SolvBTC hack probe
The investigation now includes Hypernative Labs, SlowMist, and CertiK. These firms often track crypto attacks, review smart contracts, and trace stolen funds. Their work will likely focus on how the Solv Protocol exploit happened and whether any related contracts remain exposed.
Meanwhile, Solv said it had already added measures to prevent the same issue from happening again. Still, the project did not release technical details about the exact bug. Therefore, the full cause of the SolvBTC hack remains under review.
The main facts remain clear. The Solv Protocol exploit led to a $2.7 million loss. The attacker drained 38.05 SolvBTC. Fewer than 10 users were affected. The protocol offered a 10% crypto bounty, and the DeFi security investigation is still ongoing.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: March 6, 2026 • 🕓 Last updated: March 6, 2026
