The Fantom Foundation, a non-profit organization dedicated to supporting the growth and development of the Fantom ecosystem, has recently suffered substantial financial losses due to a phishing attack. According to reports from CertiK, a blockchain security firm, two Fantom Foundation wallets on Ethereum and the Fantom Network were compromised, resulting in a loss of over $650,000. Furthermore, a team member of the Fantom Foundation allegedly lost $3.4 million, as reported by “Spreakaway” on X. This incident highlights the vulnerabilities and risks associated with the cryptocurrency industry.
Unlike the commonly misunderstood notion that the Fantom Network itself was hacked, it was the foundation’s wallets that were compromised. CertiK reveals that the Fantom Foundation lost $470,000 on Fantom and at least $187,000 on Ethereum. Etherscan data confirms that the scammers consolidated the stolen funds, which amount to at least $7 million, into a single account. This address has been identified as a facilitator of multiple phishing campaigns targeting various crypto and decentralized finance (DeFi) projects.
The Fantom Foundation fell victim to a “zero-day” exploit on the Chrome web browser, as reported on Reddit. A screenshot of a Telegram conversation allegedly shared by a Fantom admin showed the acknowledgment that “some” of their wallets were “drained.” A zero-day exploit refers to a vulnerability unknown to the developer or their tech team, which remains unpatched. This enables threat actors to exploit the vulnerability until it is addressed. In this case, the fact that the Fantom Foundation had not updated their browser to the latest version played a significant role in the success of the attack.
Following the news of the phishing attack and the subsequent loss of funds, the value of Fantom’s native cryptocurrency, FTM, experienced a decline of approximately 5%. Currently trading at around $0.17, FTM is under intense selling pressure and risks dropping below its 2022 lows. Any further bearish pressure could reverse all the gains made by FTM in the first half of 2023. It is crucial for investors and users of cryptocurrency to remain vigilant and take necessary precautions to protect their assets.
The phishing attack resulting in significant financial losses for the Fantom Foundation serves as a reminder of the ongoing vulnerabilities and risks within the cryptocurrency industry. As the popularity and adoption of cryptocurrencies continue to grow, it becomes imperative for organizations and individuals to prioritize security measures. Regularly updating software, employing secure browsing practices, and enhancing awareness of potential threats are essential steps towards minimizing the risk of falling victim to scams and cyberattacks. Despite these challenges, the underlying technology of blockchain remains promising, and with improved security measures, the industry can continue to thrive and mature.