Fantom Foundation Reports Cyberattack Resulting in Cryptocurrency Theft of Over $550,000
Summary:
The Fantom Foundation, creator of Fantom network, confirmed a cyberattack resulting in a theft of over $550,000 in cryptocurrency. While initial reports estimated thefts of around $7 million, the Foundation stated that less than 1% of its funds were lost. The attack targeted the foundation and other users of Fantom wallets, but did not impact the primary Fantom network. The company is currently investigating the security breach and reassured that 99% of its resources were secure. More details are expected to be provided as the investigation proceeds.
The Fantom Foundation, the creators of the Fantom network, suffered a cyberattack resulting in over $550,000 in cryptocurrency being stolen. The foundation acknowledged this security breach on social media platform X, hinting that the amount looted constituted less than 1% of their total funds. Furthermore, the foundation reported other Fantom wallet users felt the pinch of this vicious attack.
Original reports from Blockchain security analysts suggested the intruder made off with roughly $7 million in cryptocurrency. However, in a subsequent official statement, the Fantom Foundation clarified that some of the wallets tagged 'Fantom: Foundation wallet' were incorrectly labelled by block explorers and not all the siphoned funds belonged to the foundation. The foundation is probing further into this violation, intending to understand how these wallets were made vulnerable.
The Fantom Foundation is the brains behind the Fantom network, a smart contract platform compatible with Ethereum's Virtual Machine (EVM). The network houses over $45 million worth of assets secured within its contracts, as per DeFiLlama. The cyberattack affected the foundation and other Fantom wallet users, leaving the Fantom network untouched.
An in-depth look at the Blockchain data indicates a set of transactions involving addresses labelled "Fake_Phishing188024" and "Fantom Foundation", where over 2,000 CVX tokens and other cryptocurrencies changed hands. This was reported by on-chain sleuth Spreek who estimated the losses incurred to be close to $6.7 million on social media X.
According to a report from Telegram, the Foundation was likely attacked on October 17. Spreek confirmed this saying the hacked wallets and the losses accrued amounted to $6.7 million. However, the funds manipulated might have been sourced from places outside of the Fantom Foundation. Following the attack, the Blockchain security platform CertiK also confirmed losses estimated at a similar figure of $7 million.
A more detailed examination of the Blockchain data shows transactions involving CVX tokens, Dai and USDC moving from wallets labelled "Fantom Foundation" to a wallet labelled "Fake_Phishing188024." Usually, when a known scam account receives funds from a development team, it means the team's private key has been compromised.
The Fantom Foundation confirmed the breach on X, stating that the majority of the stolen funds were from other users and assuring that 99% of the foundation's resources are secure. The team continues its investigative efforts, as per their statement.
This story is evolving, and more details will be provided as they become available. As an NFT, readers can preserve this moment in history and back independent journalism in the crypto realm by collecting this article.
Published At
10/17/2023 6:37:36 PM
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