The Fantom Foundation, a non-profit organization developing the Fantom blockchain platform, closed a major vulnerability after suffering a $550,000 hack in October.
On October 17, the Fantom Foundation suffered a hot wallet hacking attack. Unidentified attackers stole 1% of the Fantom Foundation’s funds. The foundation subsequently stopped using some of the affected wallets and redistributed them to Fantom employees, making them a “targeted attack.”
A security researcher who spoke on condition of anonymity after the incident established According to a Nov. 20 blog post, the vulnerability is related to the dormant management token of Fantom’s ERC-20 FTM contract, which could allow an attacker to mint a portion of Fantom (FTM) for themselves on Ethereum.
According to the Fantom Foundation, the discovered vulnerability may have allowed hackers to use wallet access to steal $170 million. The organization said the value of the potential loss was based on the token price at the time of the hack, “although this estimate does not take into account insufficient market liquidity to fully absorb the token.”
The vulnerability was “quickly mitigated” according to the Fantom Foundation, which awarded the unnamed researcher $1.7 million for his contribution. The announcement added:
“The Fantom Foundation is committed to maintaining the highest security standards for our platform, and we remain grateful to the security researchers who contributed to this effort.”
The Fantom Foundation did not immediately respond to Cointelegraph’s request for comment.
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Even though the Fantom Foundation lost $500,000 to a hack a month ago, the Fantom token has continued to rise over the past four weeks.The token has Add to According to CoinGecko, its value has increased by 82% since October 17 and is trading at $0.31 at the time of writing. The coin has also gained 78% over the past year, data shows.
Launched in late 2019, Fantom Network is a blockchain protocol that enables users to build and deploy decentralized applications (DApps). Fantom Foundation’s Opera is a permissionless blockchain compatible with the Ethereum Virtual Machine that allows users to interact with the Fantom network on MetaMask, the leading self-hosted cryptocurrency wallet.
Fantom’s recent $550,000 hack was not the first attack on the Fantom Foundation or its users. In July 2023, Fantom suffered a large-scale multi-chain bridge hacking attack, resulting in the loss of $126 million worth of cryptocurrency. Then Fantom founder Andre Cronje (Andre Cronje) claim The Fantom team was misled about Multichain’s actual security level, and Multichain ceased operations in mid-July 2023.
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