Thursday, October 6, 2022
HomeAltcoinsFantom-based Algo Protocol Fantasm hacked for over $2.6 million in cryptocurrency

Fantom-based Algo Protocol Fantasm hacked for over $2.6 million in cryptocurrency

In the early hours of Thursday, some of the at-risk funds were retrieved from the weeks-old procedure.

Fantasm Finance, a Fantom-based algorithmic assets network, was attacked for over $2.6 million in cryptocurrency early on Thursday, with the stolen tokens traded for ether via the privacy protocol Tornado Cash. Our FTM collateral reserve has been exhausted, however there is still a total of 1,820,012 FTM pool balance available for redemption, they tweeted. Fantom’s native token, FTM, is one of the tokens utilised as collateral on Fantasm.

The stolen money were eventually exchanged for over 1,007 ether – almost $2.6 million at current pricing – through the Tornado Cash privacy protocol, which enables for anonymous token exchanges.

Using a limited quantity of Fantasm’s FSM tokens, hackers were able to mint XFTM, a representation of Fantom’s FTM on Fantasm. After studying blockchain data, Alpha Finance lead developer Nipun Pitimanaaree said in a tweet that the hackers started with 50 FTM and eventually used increasing quantities to switch over 2.8 million XFTM in total.

The stolen money were eventually exchanged for over 1,007 ether – almost $2.6 million at current pricing – through the Tornado Cash privacy protocol, which enables for anonymous token exchanges.

In a subsequent tweet, the Fantasm developers stated that part of the FTM collateral had been “white hacked,” which refers to abusing a protocol to highlight security problems or, in this case, retrieve tokens at danger of being stolen. Fantasm Finance, which debuted earlier this month, is a decentralised finance (DeFi) initiative that aims to create synthetic currencies for the Fantom ecosystem. DeFi is the use of smart contracts rather than third parties to provide financial services to customers, whereas synthetic tokens are blockchain-based representations of financial assets such as other cryptocurrencies.

The makers of Fantasm stated that a compensation scheme for impacted consumers was being developed. Meanwhile, Pitimanaaree warned in a tweet that more flaws in Fantasm’s flash-loan products might still exist.

 

Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.
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