Fantom Foundation Suffers $550K Hack
- The attack was on the Fantom Foundation and not the Fantom network.
- The FTM token fell by 6% following initial reports of the hack.
- Platypus Finance said it has recovered 90% of last week’s hack.
The developer of the Fantom blockchain network, the Fantom Foundation, has acknowledged that it was recently hacked. However, it clarified that the actual loss was only $550,000, not the $7 million that was widely reported. The foundation noted that one of its wallets was compromised, but over 99% of the funds were safe. It added that the bulk of the stolen assets belong to other Fantom users.
Early reports from blockchain security researchers claimed that the hacker had successfully drained wallets connected to the foundation of around $7 million. The reports stated that the hacker received several cryptocurrencies from Fantom, such as ETH, USDT, USDC,vDAI, FUSD, and others.
However, Fantom clarified that some of the hacked wallets had already been moved from the foundation to employees and had been incorrectly identified by blockchain explorers. The foundation said it is investigating the hack to discover possible loopholes. It is important to state that the Fantom Foundation was the target of the breach, not the Fantom network itself.
The Foundation also plans to strengthen its security on all related accounts. Today’s hack joins the many attacks on crypto platforms in 2023. These attacks reflect the need for strong security measures in blockchain networks that handle cryptocurrency deposits.
Interestingly, Fantom’s FTM token slipped by 6% following early news of the attack. However, the price has since recovered as other reports revealed that the hack was not as bad as first reported.
In other news, DeFi Protocol Platypus Finance said it had recovered 90% of the funds stolen last week. The hacker voluntarily returned the funds, leaving the protocol with a net loss of around $167,400. In addition, Platypus said it would not pursue any legal action.
Last week marked Platypus’s third attack of the year. The protocol suffered a flash loan attack in July that wiped off $157,000. Another flash loan attack robbed the platform of $8.5 million.
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