Solana-based Step Finance Ceases Operations After $40 Million Hack

Step Finance has become the latest cryptocurrency company to fall victim to a major security breach, with losses estimated at up to $40 million. The incident occurred on January 31, when attackers exploited devices used by members of Step Finance's executive team, gaining access to the treasury and fee wallets.

The breach drew attention to the importance of strong internal controls in cryptocurrency companies, particularly in managing private keys and bring-your-own-device practices. While the platform's smart contract was not targeted, compromised endpoints and weak device security led to the significant losses.

Despite efforts to recover some funds, with around $4.7 million retrieved through Solana's Token22 protections, the amount fell short of what was needed to restore stability to operations. The hack triggered a sharp collapse in confidence, causing the native STEP token to drop by over 97% and making fundraising increasingly difficult.

As part of the shutdown process, Step Finance is working on a buyback program for STEP holders, with details yet to be released. Remora Markets has confirmed that all rTokens remain fully backed and will allow holders to exchange their tokens for USD Coin (USDC).