Crypto Breach: Fantom Foundation's $550K Loss
The Fantom Foundation, renowned for its innovative work on the Fantom network, recently found itself entangled in a rather unfortunate security incident that led to the misfortune of losing a sum totaling more than $550,000 in valuable cryptocurrency assets. The foundation, taking the virtuous path of transparency and accountability, made a formal announcement about this regrettable event on a platform known as X. In the wake of this, they have boldly proclaimed that the lion's share of the assets surreptitiously snatched in this nefarious act belonged to other users, further reassuring the community that an impressive 99% of the foundation's assets continue to remain in a fortress of safety. In the spirit of vigilance and resolve, the team is presently dedicating their time and expertise to delve into the depths of this cyber breach, determined to uncover the intricacies of the attack.
— Fantom Foundation (@FantomFDN) October 17, 2023
It is worth noting that in the initial stages, the cybersecurity sleuths specializing in blockchain sounded an alarm bell, reporting the staggering loss to be in the ballpark of a jaw-dropping $7 million in digital riches. However, in a laudable display of responsibility, the Fantom Foundation later issued an official statement to provide clarity in a landscape clouded by uncertainty. They clarified that a number of the wallets, initially branded as "Fantom: Foundation wallet," had fallen victim to a regrettable case of mistaken identity, as block explorers had incorrectly tagged them. These intrepid explorers emphasized that not all of the funds that fell into the hands of the malevolent intruders belonged to the foundation. The attentive team went on to explain that some of the affected wallets had once been firmly under the foundation's wing but had, since then, been reassigned to a dedicated Fantom employee and had, as a consequence, relinquished their status as repositories of the company's financial assets. In their ongoing quest for answers, the vigilant team is leaving no stone unturned in their efforts to unravel the intricacies of this security breach.
The Fantom Foundation, the visionary architect of the Fantom network, a bastion of innovation in the realm of Ethereum Virtual Machine-compatible smart contract platforms, stands tall with over $45 million securely ensconced within its smart contracts, a testament to the trust the community has bestowed upon it. It is crucial to underscore that the incident, while disconcerting, was primarily an assault on the foundation and the broader community of Fantom wallet users, rather than posing a direct threat to the integrity of the Fantom network itself.
same attacker did this account.
— Spreek (@spreekaway) October 17, 2023
notably they unwound a lot of fairly complex defi stuff on it, so probably someone quite familiar with defi ecosystem pic.twitter.com/InTq2N5Unk
On the 17th day of October, the watchful eye of on-chain investigator Spreek brought attention to a rumor circulating on X, alleging that the foundation had been subjected to an assault. Relying on information from sources on Telegram, they proceeded to compile a list of the wallets that had borne the brunt of this unfortunate event and estimated the collective losses to be in the vicinity of $6.7 million. It is, however, imperative to note that the losses may have encompassed assets from sources outside the immediate purview of the Fantom Foundation.
The CertiK blockchain security platform lent its weight to the chorus of confirmation regarding the foundation's security breach. Their initial reckoning of losses amounted to $657,000 but was subsequently revised upward to approximately $7 million. A meticulous examination of blockchain data uncovers a transaction from an account bearing the label "Fantom Foundation Wallet 1," as identified by Etherscan, sending an assorted collection of over 2,000 CVX, 1,000 Dai, 4,500 USD Coin, and an assortment of other tokens to an account designated as "Fake_Phishing188024." Furthermore, an account designated "Fantom Foundation Wallet 20," as recognized by the Fantom network's block explorer, dispatched a sizable sum of 1 million FTM tokens to an account labeled "Fake_Phishing32." The significance of these transactions lies in the fact that when a development team finds itself reluctantly directing funds to a known fraudulent account, it serves as a distress signal indicating the possible compromise of the team's private key, thus magnifying the urgency of the situation.
You might also like: Scroll's Mainnet Debut
Trending
Press Releases
Deep Dives
