The Fantom Foundation's Hot Wallet Was Hacked For $550K
The Fantom Foundation lost $550,000 in cryptocurrency due to a flaw in the official Fantom wallet.
The Fantom Foundation, which created the Fantom network, was hacked for more than $550,000 in cryptocurrencies. The charity verified the attack on X, saying that the majority of the funds stolen belonged to other users and that 99% of the organization's finances were not compromised. The team is presently examining the attack, according to the statement.
Blockchain security researchers initially estimated that the attacker took around $7 million in cryptocurrency. The Fantom Foundation later issued an official statement stating that some of the wallets branded "Fantom: Foundation wallet" were mislabeled by block explorers and that not all of the stolen cash was from the foundation. According to the team, several of the wallets impacted previously belonged to the foundation but had subsequently been reallocated to a Fantom employee and were no longer carrying corporate funds. The team is presently examining the incident to identify how the wallets were hacked.
The Fantom Foundation is the creator of the Fantom network, a smart contract platform compatible with the Ethereum Virtual Machine. According to DefiLlama, the network has over $45 million in assets trapped under its contracts. The foundation and other Fantom wallet users were targeted, not the Fantom network.
On Oct. 17, on-chain sleuth Spreek posted on X that the foundation had been "allegedly" assaulted, citing a Telegram report. They eventually disclosed the compromised wallets and projected losses of $6.7 million, but they also said that the drained monies could have come from sources other than the Fantom Foundation.
CertiK, a blockchain security platform, confirmed the hack. It assessed losses at $657,000 at first, but eventually increased this figure to almost $7 million. Examining the blockchain data reveals that an Etherscan account named "Fantom Foundation Wallet 1" sent over 2,000 CVX and 1,000 Dai DAI. tickers down $1.00, USDC 4,500 USD Coin, tickers down $1.00, as well as other tokens, to a wallet titled "Fake_Phishing188024." Furthermore, the Fantom network block explorer dubbed "Fantom Foundation Wallet 20" an account that sent over 1 million FTM FTM. Tickers are down $0.18. to a user named "Fake_Phishing32." When a development team transfers money to a known scam account, it usually means that the team's private key has been stolen.
