Fantom Foundation Hacked: Over $550,000 in Cryptocurrency Lost

In a shocking turn of events, Fantom Foundation, the developer behind the Fantom network, fell victim to a cyberattack resulting in the loss of over $550,000 in cryptocurrencies. The organization confirmed the breach on the X platform (formerly known as Twitter) and claimed that the stolen amount accounted for less than 1% of their total reserves. Additionally, it was revealed that some Fantom wallet users were also affected by this incident.

Initially, blockchain data showed that an address labeled as “Fake_Phishing188024” had siphoned off more than 2,000 CVX and various other cryptocurrencies from an address identified by Etherscan as belonging to the Fantom Foundation. Spreek, a blockchain analyst, reported the attack on X and estimated the total loss to be around $6.7 million. CertiK, a blockchain security platform, also estimated the stolen amount at approximately $7 million.

total attacker profit (may not all necessarily be from fantom or related wallets) seems to be ~$6.7m pic.twitter.com/0rkDHULsdI

— Spreek (@spreekaway) October 17, 2023

The CertiK blockchain security platform confirmed that Fantom Foundation had indeed fallen victim to a hack. Initially, CertiK estimated the loss at $657,000, but later revised this figure to around $7 million. An analysis of blockchain data revealed that an account labeled “Fantom Foundation Wallet 1” by Etherscan had transferred over 2,000 Convex (CVX) tokens, 1,000 DAI, 4,500 USDC, and various other tokens to an account labeled “Fake_Phishing188024.” Furthermore, an account labeled “Fantom Foundation Wallet 20” had sent over 1 million Fantom (FTM) tokens to an account labeled “Fake_Phishing32.”

This unfortunate event caused FTM’s price to continue declining, especially amidst the challenges faced by various Altcoins.

Fantom Foundation confirmed the attack on X, asserting that the majority of the stolen funds belonged to other users, and 99% of the organization’s funds remained secure.

pic.twitter.com/gShkT3C9XV

— Fantom Foundation (@FantomFDN) October 17, 2023

Subsequently, Fantom Foundation also revealed that some wallets labeled “Fantom: Organization Wallet” were, in fact, not theirs, which accounted for a significantly lower amount of stolen funds. According to the group, some wallets initially affected were owned by the organization but had since been transferred to a Fantom employee and no longer held the company’s assets. The group is currently investigating the breach to determine how these wallets were compromised.

About Fantom Foundation

Fantom Foundation is the driving force behind the Fantom network, a smart contract platform compatible with the Ethereum Virtual Machine (EVM). This network boasts more than $45 million in total value locked (TVL) within its smart contracts, according to DeFiLlama. It is crucial to note that the attack primarily targeted the organization and Fantom wallet users, not the Fantom network itself.