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Fusion Network Suffers an Attack; Loses $6.4 million Worth of FSN Tokens

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Fusion network hacked

Fusion Network’s token swap wallet suffered an attack on September 29. As a result, the network lost approximately one-third of its FSN tokens. The Fusion Foundation unveiled this news through a blog post on September 29. Per the blog post, this hack saw the network lose 10 million native FSN tokens. Apart from this, the attackers also made away with 3.5 million ETH-based ERC-20 FSN tokens.

According to the blog post, this theft saw the network lose around $6.4 million worth of FSN tokens. At the time of posting, the firm’s probe into the matter had not revealed other affected wallets.

The Foundation said,

Investigations so far show that this is the only wallet affected. Furthermore, as of now, we have not received any report that other holders’ wallet were impacted.

It added that the thief had already started laundering the stolen coins. The firm noted that there was unusual wash trading activity on several exchanges after the theft. According to the Foundation, this activity was most widespread on Bitmax and Hotbit.

A Stolen Private Key

Explaining how this attacked happened, the firm said that the hacker got access to the wallet after stealing a private key. However, the Foundation claimed that the Fusion Protocol and technology itself has been and remains secure.

To prevent further laundering of the stolen funds, the firm has suspended withdrawals and deposits of FSN tokens on several exchanges. These include Huobi, OKEx, BitMax, Citex, and Hotbit. On top of this, the company moved all the funds remaining in the swap wallet into a cold wallet.

The firm added that,

Abnormal transactions are currently being tracked, and there is uncertain evidence showing that theft may have been caused by personnel related to the Fusion Foundation. The Foundation is working closely with exchanges to gather further information and evidence.

Also, the firm added that it was working with some undisclosed technological approaches to recover these funds.

While the firm is allegedly doing its level best to prevent the laundering of FSN tokens, the coin’s value is plunging rapidly. At the time of writing, the coin is trading at $0.271. According to data from Coin360, this value is 55.5 percent lower than the one it traded before the attack.

This news comes after Juniper Networks, an American internet infrastructure firm found new sophisticated spyware. According to a report, this spyware uses the Telegram app to replace crypto addresses with its own. The firm unveiled that this spyware’s clipping supports several leading crypto coins. These include, but not limited to BTC, ETH, XRP, LTC, and BCH

Do you think Fusion Foundation will be able to recover the stolen FSN tokens? Let us know in the comments below.

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