Blockchain-based swap wallet platform the Fusion Network has been hacked on September 28, resulting in the theft of $6.4 million (at the time of hack) worth of digital tokens, the company announced.
The swap wallet with address 0x8e6bDa71f3f0F49dDD29969De79aFCFac4457379 has been compromised and 10 million native FSN and 3.5 million ERC20 FSN tokens were stolen. Although the investigation is still under process, the company assured that only one wallet had been affected.
The announcement was first made by the platform’s chief executive DJ Qian on Saturday in the official FSN Telegram group.
The announcement also detailed that “abnormal wash trading behavior” followed the theft and a part of the stolen funds were transferred to exchanges like Bitmex and Hotbit and also sold.
The stolen FSN tokens make up 38 percent of the total supply of the token, per Coinmarketcap.com, and the company has now transferred the remaining tokens to secure cold storage.
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“Compromise of the swap wallet was due to the Private Key being stolen. The Fusion Protocol and technology itself has been and remains secure,” the announcement stated.
A massive drop in market value
The market performance of the token also took a hit amid the hack as it shed more than 51 percent of its value since then. However, in the last 24 hours, a positive trajectory added 20 percent of the lost value, according to Coinmarketcap.com.
To check the liquidation of the tokens, the Fusion Network also contacted major exchanges which now suspended deposit and withdrawal of the token.
“Primary exchanges OKEX, Huobi, Bitmax, Citex, Hotbit have suspended deposit and withdrawal of FSN tokens,” the company stated.
It is said that it suspects an insider to be behind the attack.
“Abnormal transactions are currently being tracked, and there is uncertain evidence showing that theft may have been caused by personnel related to the Fusion Foundation. The Foundation is working closely with exchanges to gather further information and evidence,” the Fusion Network added.