Fusion Network Loses $6.4 Million in Hack

Financial platform Fusion Network suffered from a $6.4-million loss in a breach last week, reported Finance Magnates. This is the equivalent of around 10 million native FSN and 3.5 million ERC20 FSN tokens stolen during the attack.

Fusion Network chief executive DJ Qian declared the losses on Saturday through its official FSN Telegram group. The attack occurred on September 28, when an unknown attacker breached the swap wallet. The wallet, with the address 0x8e6bDa71f3f0F49dDD29969De79aFCFac4457379, contained the tokens stolen during the attack.

Fusion Network immediately ordered an investigation of the incident.

Through the Telegram announcement, Qian said that an “abnormal wash trading behavior” occurred right after the breach. This refers to the practice of buying and selling assets in order to mislead the market. Qian added that a portion of the stolen coins has been “transferred to exchanges like Bitmex and Hotbit.”

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In a report by CoinMarketCap, it was revealed that the stolen tokens amount to around 38% of its total supply. To mitigate the damage, Fusion Network has decided to freeze the remaining segment of the supply.

Financial Platform Fusion Network

Qian also revealed that the hack was conducted using a stolen Private Key. This means that the company’s technology is still considered secure. However, the firm suspects “the involvement of an insider,” although there is “uncertain evidence” to back this theory.

While the inquiry remains underway, the firm assured its users that “only one wallet has been affected” during the attack. The rest of the swap wallets and the Fusion Protocol remains safe for use.

The aftershock of the attack

While the firm assured its clients that only one wallet was breached, the market has responded negatively. The FSN token suffered a whopping 51% dip in market value after the hack.

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Fortunately, the coin is slowly recovering from the loss within the last 24 hours. In fact, CoinMarketCap reported that the FSN currency was able to regain around 20% of the value it lost.

Fusion Network has gotten in touch with leading exchange platforms to help detect whether the stolen coins have been liquidation. Exchange services including Bitmax, Citex, Hotbit, Huobi, and OKEX cooperated by suspending the withdrawal and depositing of FSN tokens.

The firm assured users that they are in the process of flagging “abnormal transactions.” The company also told clients that it is currently coordinating with various exchange platforms to learn more about the attack.

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