Fusion Network’s token swap wallet has experienced a breach, which consequently led to a $6.4M worth of financial damage, in the form of stolen tokens.
Reported by the Fusion Foundation on September 29, the firm’s swap wallet has undergone a breach, with the attackers illegally acquired 10 million native FSN and 3.5 million Ethereum (ETH)-based ERC-20 FSN tokens. The estimated value of the financial damage in tokens stands at approximately $6.4 million at the moment of the incident.
The firm has yet to disclosed added names of the wallets upon which the compromised had impacted. The attackers has reportedly initiated the laundering process for the coins.
“After the currency was stolen, abnormal wash-trading behaviour occurred, and some of the stolen tokens were sold across exchanges, in particular Bitmax and Hotbit.”
The stolen private key has reportedly granted access of the wallet to the hackers, while the report claimed “the Fusion Protocol and technology itself has been and remains secure.”
In an effort to cease the laundering process from completing, all FSN tokens-related deposits and withdrawals have been reportedly ceased on numerous exchange firms, nominally Huobi, OKEx, Bitmax, Citex and Hotbit. All the remaining tokens not effected was transferred to a cold storage, following with tracking initiatives have been placed upon abnormal transactions.
Finally, Fusion Network is reportedly putting in resources to come up with undisclosed technological measures to retrieve the stolen funds.