Cybercriminals are always on the lookout for easy prey, and this time around a Fusion Swap Wallet was their target. Fusion Foundation is counting losses after tokens were stolen. Per a blog post on its site, the cybercriminals gained access to the wallet after they got hold of its private keys.
The private keys granted the criminals access to the wallet leading to them siphoning out 3.3 million worth of ERC20 FSN tokens and 10 million native FSN tokens. The latter brought the loss to around $6.4 million at the current figures. According to the announcement from Fusion Foundation, only the Fusion swap wallet was affected. The above was followed by an unusual wash trading process which resulted in some of the tokens getting traded on several exchanges. The cybercriminals used Hobit and Bitmax to sale the coins. Fusion said;
“After stealing the tokens, the cybercriminals proceeded to initiate abnormal wash trading transactions and sold the tokens.”
Fusion Foundation Suspects Its Employees Might Be Involved
With the cybercriminals intimating unusual transactions to sell the tokens, according to Fusion Foundation, the latter points to them having help from inside. However, with investigations going on, Fusion hopes to get enough evidence to prosecute any of its personnel if they helped the cybercriminals. However, precautions have already been taken to prevent any more losses.
At the moment, withdrawal and depositing of FSN based tokens are suspended at Hobit, Citex, Bitmax, Huobi and OKEX crypto exchanges. On the other hand, Fusion Foundation has moved all the remaining funds in a cold wallet to prevent any further attacks. Recovery measures have kicked in, and Fusion is working with investigators to ensure all funds are recovered.
However, they assure their customers their systems are safe and secure. The above is just an unfortunate incidence.
Fusion Foundation completed its post by urging its community and stakeholders from across the globe to support it through this moment. Although stealing of private keys is a very significant risk, it shows the extent at which cybercriminals will go to steal from crypto enthusiasts.
However, such incidences are also wakeup calls for stakeholders in the cryptocurrency sector to strengthen security measures in place. At the moment, FS tokens are trading at $0.270535 per coin360 figures.