Fusion Network’s token swap wallet has been compromised, as a third of FSN tokens was stolen roughly.
On September 29, Fusion Foundation announced that its swap wallet was compromised, which resulted in the theft of 10 million native FSN and 3.5 million Ethereum (ETH)-based ERC-20 FSN tokens. The total worth of stolen FSN tokens was estimated at around $6.4 million at that time.
However, the Foundation’s investigation has not declared any other affected wallets so far. The alleged cybercriminal reportedly started to legalize the coins already:
“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.”
Private Key was stolen
The attacker reportedly attained access to the wallet by stealing the private key associated with it. However, the author of the post claims that “the Fusion Protocol and technology itself has been and remains secure.”
In an attempt to save the legalizing of the funds in question, deposits and withdrawals of FSN tokens have been reportedly suspended on cryptocurrency exchanges such as Huobi, OKEx, Bitmax, Citex, and Hotbit. All the funds remaining in the token swap wallet were moved to a cold wallet, abnormal transactions are being recorded. Lastly, the Foundation is also working on some unspecified technological approaches to regain the funds.
However, FSN is trading at around $0.174, over 66% lower than the one it traded on September 28 (Saturday).
Thus, Juniper Networks, the American Internet infrastructure firm found new spyware that uses the Telegram app to replace crypto addresses with its own.