Fantom Foundation Addresses Major Security Flaw After $550,000 Hack; Token Value Rises
Summary:
The Fantom Foundation, known for developing the Fantom blockchain platform, has addressed a crucial security flaw following a $550,000 hack in October 2021. After the breach, a security researcher discovered an additional potential risk tied to an inactive admin token for Fantom's ERC-20 FTM contract which, if exploited, could have allowed the hacker to steal $170 million. Despite a hit in October, the value of the Fantom token has risen significantly, with an increase of 82% since the attack, and a yearly increase of 78%.
In the wake of a significant hacking incident last month, where $550,000 was stolen, the Fantom Foundation, renowned for their work on the Fantom blockchain platform, has addressed a substantial security flaw. An unidentified culprit compromised the Foundation's hot wallet on October 17th, making away with 1% of the foundation's assets. Following the fraudulent event, the compromised wallets were reassigned to a staff member of Fantom.
An alert security expert identified a looming potential threat linked to the breach and brought it to the attention of the Fantom Foundation. The warning, issued through a blog post on November 20, detailed a security issue concerning an inactive admin token for Fantom's ERC-20 FTM contract. This flaw could have given the cybercriminals the chance to create part of the Fantom (FTM) cryptocurrency on the Ethereum platform.
With this information, the Fantom Foundation surmised the perpetrator could have potentially stolen $170 million more via their wallet access. The foundation reached this figure by using the token price at the time of breach. It must be noted that this estimation doesn't account for the market's inadequate liquidity to fully manage the tokens.
Prompt action was taken to neutralize this threat, with the foundation praising the swift mitigation of the vulnerability. In acknowledgment of the security expert's significant contribution, the Fantom Foundation granted $1.7 million as a reward.
The Fantom Foundation iterated its dedication to maintaining high security standards for its platform and expressed its appreciation for security experts who play a significant role in safeguarding their operations.
Despite losing $500,000 to cybertheft just a month ago, the value of the Fantom token has been on an upward swing over the past month, It has gained 82% since October 17th and is currently at $0.31 according to CoinGecko. Yearly data depicts an impressive 78% increase for the token.
Fantom, a noteworthy name in blockchain protocol, providing users with a platform for creating and deploying decentralized applications (DApps), released the Fantom network in late 2019. The foundation's Opera, an unrestricted blockchain, is compatible with the Ethereum Virtual Machine, making it possible for users to interact with the Fantom network via MetaMask, a major personal cryptocurrency wallet.
The recent $550,000 theft is not the first time Fantom has fallen prey to cybercriminals. In July 2023, Fantom experienced a colossal multichain bridge hack, which led to the loss of cryptocurrency worth $126 million. Post this incident, Fantom creator Andre Cronje accused Multichain of misrepresenting their actual level of security, which led to them shutting down in mid-July 2023.
Published At
11/21/2023 9:45:29 AM
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