The blockchain-based financial platform, Fusion Network has announced a compromised wallet on Sept. 28. The Fusion swap wallet compromise resulted in a theft of 10 million native FSN tokens.
On Sept.28, Fusion Foundation’s CEO, DJ Qian announced in the official telegram group that the token-swap wallet with an Ethereum address to swap ERC-20 FSN tokens for the tokens on the FSN mainnet had been compromised.
Qian announced on the telegram group:
“After it was stole, we found the [thief] kept moving those stolen FSN in order to wash the address holding FSN, and sent part of the them to exchanges to sell.”
The theft was due to a compromise of the swap wallet’s private key after the private key was stolen, abnormal wash-trading of the tokens were observed, in exchanges such as Bitmax and Hotbit. The loss of funds appeared to have been worth approximately $6.4 million at the time of the hack.
The remaining tokens in the wallet had been moved to a cold storage address, while major exchanges such as OKEx, Huobi, and Bitmax had been contacted.
Qian stated that a certain individual with access to the foundation’s wallet’s private keys was to blame and has collected evidence that is substantial enough to be reported to the police.