DeFi hacks have been raising concerns within the crypto community for quite some time now. These attacks on DeFi platforms have exposed vulnerabilities that hackers are increasingly exploiting, resulting in substantial losses for investors and projects alike.
On Tuesday, the Fantom Foundation confirmed that a “small number” of its wallets were compromised. The resulting losses were approximately $550,000.
Although this incident amounts to only 1% of the Foundation’s total funds, it raises significant concerns about the security at Fant. The attack looked that it was targeted towards specific wallets managed by a Fantom wallet.
A Fantom employee’s personal wallets were compromised. Some of these impacted wallets were labeled ‘Foundation Wallets,’ but they were no longer being utilized by the organization and had been reassigned to a Fantom employee, making this a targeted personal attack
How were the wallets hacked?
Preliminary investigations indicate a possible vulnerability through a zero-day hack in Google Chrome. However, the actual cause and mechanism of the breach are still under scrutiny.
It is necessary to take a deeper look at internal security procedures within the firm. Concerns have been raised about the security measures in place for reassigned wallets under staff oversight.
Fantom has expressed confidence in the safety of its primary funds after the targeted attack. They claim that 99% of their treasury remaining secure. Despite the affirmation the crypto community remains concerned about the security of their assets, given the targeted nature of this breach.
Crypto and DeFi hacks continue to wreck the industry
While 2023 began with hope as losses from crypto hacks declined, by the time it was August, hackers stole over $45 million in digital assets.
According to CertiK, as of September, $997 million in digital assets have been drained by hackers from crypto platforms. It includes $26 million from exit scams, $6.4 million from flash loan attacks, and $13.5 million from other incidents. Notable protocols Zunami and Exactly have faced the wrath of hackers. Zunami Protocol lost $2.2 million, while the Exactly Protocol exploit lost more than seven million.