Fantom-Based Algo Protocol Fantasm Exploited for $2.6M

Fantom-based algorithmic assets protocol Fantasm Finance was exploited for implicit $2.6 cardinal worthy of crypto aboriginal connected Thursday, with the stolen tokens swapped for ether utilizing privateness protocol Tornado Cash.

• “Our FTM collateral reserve has been exploited, determination is inactive 1,820,012 FTM excavation equilibrium remaining presently for redemption,” they tweeted. FTM is Fantom’s autochthonal token and 1 of the tokens utilized arsenic collateral backing connected Fantasm.

• Hackers were capable to mint XFTM, a practice of Fantom’s FTM connected Fantasm, by utilizing a tiny magnitude of Fantasm’s FSM tokens. The hackers started with 50 FTM, gradually utilizing larger amounts to swap implicit 2.8 cardinal XFTM successful total, Alpha Finance pb technologist Nipun Pitimanaaree explained successful a tweet aft examining blockchain records.

• The stolen funds were aboriginal swapped for implicit 1,007 ether – astir $2.6 cardinal astatine existent prices – utilizing privateness protocol Tornado Cash, which allows for anonymous token swaps.

• The Fantasm developers said successful a follow-up tweet that immoderate of the FTM collateral was “white hacked,” a process that refers to exploiting a protocol to emblem information concerns or, successful this case, retrieve tokens astatine the hazard of getting hacked.

• Fantasm Finance, launched earlier this month, is simply a decentralized finance (DeFi) task aimed astatine processing synthetic tokens for the Fantom ecosystem. DeFi broadly refers to the usage of astute contracts alternatively of 3rd parties for providing fiscal services to users, portion synthetic tokens are blockchain-based representations of fiscal assets, specified arsenic different cryptocurrencies.

• Meanwhile, Pitimanaaree cautioned successful a tweet that further vulnerabilities related to Fantasm’s flash-loan merchandise mightiness inactive exist.