Solv Protocol Responds to BTC+ Contract Exploit on BNB Smart Chain

Solv Protocol has reported a security breach affecting its BTC+ contract on the BNB Smart Chain (BSC) following a private key compromise on July 13. The incident led to the unauthorized minting of tokens, prompting the project team to initiate emergency protocols to secure underlying assets. While the team successfully contained the exploit within three hours, subscriptions and redemptions for BTC+ have been suspended as a precautionary measure, with services expected to resume within approximately two weeks.

Mechanism of the Attack and Emergency Mitigation

The security breach occurred after an attacker gained access to the deployer’s private key, allowing for the unauthorized upgrade of the BTC+ minting proxy contract on the BSC network. This access enabled the malicious actor to generate fraudulent BTC+ tokens. In response, the Solv Protocol team executed a rapid recovery plan that included:

• The isolation of the compromised malicious contract.
• The freezing, destruction, or quarantine of all unauthorized BTC+ tokens.
• The rotation of all affected access credentials and signing keys.
• The implementation of upgraded deployer security measures.

According to the official investigation, all underlying Bitcoin (BTC) assets backing the tokens remain fully secure and unaffected by the contract-level exploit.

Timeline for Recovery and User Safety Measures

Solv Protocol has initiated a comprehensive external re-audit of its systems to prevent future vulnerabilities. The team emphasized that BTC+ has no official liquidity pools on any Decentralized Exchanges (DEXs), warning users against interacting with unofficial trading pairs. Users are advised to acquire and hold BTC+ exclusively through official Solv channels once operations are restored.

As a precautionary measure, BTC+ subscriptions and redemptions have been paused and are expected to resume within two weeks.

The incident highlights the ongoing risks associated with private key management in decentralized finance (DeFi) ecosystems. By pausing operations for a fourteen-day window, Solv Protocol intends to finalize its post-mortem analysis and ensure that the newly deployed signing keys and security patches meet industry standards. Investors are encouraged to monitor the protocol's official social media updates for the specific date of service restoration on the BNB Smart Chain.