Max E.Fri, Mar 11, 2022 6:40 PM
Fantasm Finance Suffers $2.6M Exploit
On March 9, decentralized financial service Fantasm Finance fell victim to hackers who had managed to steal 1,007 Ethereum (ETH) coins worth $2.6 million at the current exchange rate.
The attackers took advantage of a bug in the Fantasm Mint smart contract. They were able to issue a large amount of XFTM tokens, exchange them for ETH and send digital assets to a wallet. The criminals then transferred ETH to the TornadoCash mixer in order to launder the stolen virtual currency.
According to cybersecurity experts, several people followed the example of unknown hackers and took advantage of the Fantasm Mint smart contract vulnerability. They removed the vast majority of the remaining digital assets from the pool. The exact amount of damage is still unknown, but it is expected to exceed $2.6 million.
In their report, Fantasm Finance has asked users to withdraw their locked XFTMs, as well as move tokens out from the liquidity pool in order to avoid losing coins. Moreover, according to the repayment plan, the team has also promised to compensate all victims of the cyber attack.
Fantasm Finance is a decentralized financial service that runs on the Fantom blockchain and has recently started its development in the decentralized finance space. The mission of the project is to develop and popularize synthetic tokens for the Fantom Ecosystem. Amid news of the hack, the value of the XFTM token has fallen by 82.28% over the last 24 hours. At the time of writing, the price of the asset is $0.0005669