In a recent cyber attack, the Fantom Foundation, developers of the Fantom network, reported a loss of over half a million dollars in cryptocurrency. The foundation promptly confirmed the incident, revealing that the majority of the funds misappropriated were user assets. However, they’ve reassured stakeholders that 99% of their funds are still secure.
Initial reports by blockchain security experts had estimated the loss at a staggering $7 million. These estimations were based on transactions observed from wallets tagged as “Fantom Foundation wallet.” Addressing this discrepancy, the Fantom Foundation clarified that certain wallets, although originally affiliated with them, had been re-designated to a staff member and didn’t contain the foundation’s funds. Investigations are underway to understand the extent of the breach.
The Fantom network, an Ethereum Virtual Machine-adaptable smart contract platform, has assets worth over $45 million, as per DefiLlama. It’s important to note that the recent breach targeted the foundation and its wallet users, and not the Fantom network directly.
Earlier, on Oct. 17, on-chain investigator Spreek alluded to the possibility of an attack based on Telegram chatter. They provided an estimated loss of $6.7 million and hinted that this figure might encompass funds outside the Fantom Foundation.
Further supporting these claims, blockchain security firm CertiK confirmed the breach. The firm’s primary assessment figured the loss at $657,000 but this was later adjusted to roughly $7 million. Notably, blockchain data showcased transactions from wallets recognized as “Fantom Foundation Wallet 1” and “Fantom Foundation Wallet 20,” transferring sizable amounts to wallets labeled “Fake_Phishing.” Such transactions typically suggest unauthorized access to a team’s private keys.
As the investigation unfolds, the foundation is working diligently to ascertain the depth of the breach and implement safeguarding measures.
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