The Fantom Foundation, an open-source distributed ledger technology (DLT) platform, has been victim of a major security breach resulting in the loss of $6.7 million in tokenized assets. The Foundation was planning to use funds from the tokens to further development projects on the Fantom platform.
The breach occurred on July 20th, just hours after the Fantom Foundation had announced its first successful mainnet launch and the issuance of the native token FANTOM. The hackers managed to misuse a security vulnerability to siphon off more than one million tokens from the decentralized platform.
FAN tokens are the native asset on the Fantom network and are used for powering transactions, governing protocols and rewarding the Foundation and developers for their efforts. They’re also listed on several exchanges, including Binance, Huobi, OKEx, and Coinone.
Fantom Foundation have since upgraded their security measures and are working with law enforcement agencies to investigate the incident. Accordong to Fantom Foundation chairman Ahsan Waheed, the Foundation is finding ways to return funds to their rightful owners.
The Fantom Foundation has said that out of their own funds, they will be refunding 70% of the token lost in the breach, with the rest responsibility shouldered by investors and custodians. Although analysts have noted that this will not recover all losses, it still marks a commendable effort by the Foundation to safeguard its users’ assets.