Step Finance ShutDown After $40M Hack Ends Solana Era

What Led To Step Finance shutdown

The Step Finance shutdown directly follows the security breach disclosed on January 31, 2026. Attackers compromised executive devices through a known attack vector and gained unauthorized access to multiple treasury and fee collection wallets on Solana. Consequently, they drained approximately 261,854 SOL, which initially carried a value of around $27 million to $30 million, while total losses across assets reached up to $40 million.

In response, the team immediately engaged cybersecurity experts and authorities. They recovered about $3.7 million in Remora related funds and another $1 million elsewhere. However, the losses severely damaged treasury reserves and operational stability. 

Previously, the organization had already reduced its footprint. In November 2025, Step Finance implemented a major restructuring due to declining DeFi activity and rising infrastructure costs. The company retired its Step Dashboard, APIs, and mobile application, which had supported hundreds of thousands of users. Instead, the team shifted focus toward SolanaFloor, a media and analytics platform, and Remora Markets. 

Meanwhile, the market reaction intensified the crisis. STEP, the platform’s governance token, fell more than 80 percent within the first 24 hours after the hack announcement. Over time, the token declined approximately 97 percent from its pre incident levels. 

Stakeholder Recovery and Compensation Plans

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Step Finance has introduced structured recovery measures to support users and token holders. First, the team will conduct a STEP token buyback using a snapshot taken before the January hack. This process will allow holders to receive compensation based on their balances before the exploit.

In addition, Remora Markets confirmed that all rTokens remain fully backed at a strict 1:1 ratio with underlying assets. The team is currently building a dedicated redemption system that will allow users to convert rTokens directly into USDC. Through these measures, the organization aims to fulfill its remaining obligations transparently and reduce the financial impact on its community.

Implications for the Solana Ecosystem

The shutdown of Step Finance, SolanaFloor, and Remora Markets represents a significant loss for the Solana ecosystem. Since its founding in 2021, Step Finance played a major role in portfolio tracking, analytics, and ecosystem onboarding. At its peak, the platform served nearly 300,000 monthly active users and helped many participants navigate Solana DeFi.

As a result, this closure highlights ongoing structural risks in decentralized finance, especially in treasury security and key management. The incident reinforces the importance of stronger protections such as multi signature authorization, hardware isolated key storage, and stricter operational security practices.