Fantom Foundation Hit by Cyber Attack: $550K Stolen from Hot Wallet

The Fantom Foundation, responsible for the Fantom network, is grappling with a significant cryptocurrency theft. Over $550,000 in digital assets have been siphoned off in a targeted attack. Although most of the stolen funds belonged to users, the foundation has assured the public that 99% of its own holdings remain secure.

This breach prompted a swift response from blockchain security researchers, who initially reported losses of around $7 million. However, the Fantom Foundation clarified that not all of the stolen funds were its own. Some of the wallets initially attributed to the foundation had been reassigned to an employee and no longer held company assets. The team is diligently investigating the breach to uncover how these wallets were compromised.

As the developer behind the Ethereum Virtual Machine-compatible Fantom network, the foundation oversees more than $45 million in assets locked within its smart contracts. The attack was aimed at both the foundation and other users of Fantom wallets, underscoring the importance of security in the cryptocurrency space.

The incident was first reported on October 17, and blockchain security platform CertiK confirmed the breach, initially estimating losses at $657,000 but later updating the figure to around $7 million. Intriguingly, blockchain data reveals that funds from Fantom Foundation wallets were sent to accounts labeled as “Fake_Phishing,” indicating a potential private key compromise.

This breach highlights the ongoing need for robust security measures within the crypto industry.