• Fantasm Finance suffers a $2.6 million loss as a result of a DeFi exploit

  • Fantasm Finance, a Fantom Network-based synthetic assets protocol, has been attacked, with roughly 1,007 ETH stolen. The team stated that a post-mortem will be performed and that all compensation options for victims would be considered.

    Fantasm Finance, a synthetic assets network, was attacked and lost 1,007 ETH, worth around $2.6 million, the team stated on Twitter on March 9. The attacker’s address reveals the scope of the heist. There are currently roughly 1.8 million FTM available for redemption in the pool.

    Fantasm Finance has apologized to the community and stated that it is now conducting a post mortem to determine compensation possibilities. The specifics are scheduled to be released on March 10.

    Tornado Cash was used by the attacker to conceal the transactions, according to security alert service PeckShield. Tornado Cash is a mixing service that obscures transaction history by breaking the link between source and destination addresses.

    The crypto community is understandably outraged by the incident, which adds to the problems that Fantom Network investors have been experiencing in recent months. For a variety of causes, the network and its associated projects have seen a decrease in funding. One big factor is Andre Cronje’s departure from DeFi, which made news around the crypto industry.

    Fantom Network has only recently begun to take off, with various platforms developing in recent months. As a result, it has become a major target for bad actors, who continue to prey on new niches and networks.

    Market attacks continue to occur.

    The crypto market has long been vulnerable to hacks, and the DeFi market is no exception. The frequency with which new initiatives are launched without a security audit makes them particularly appealing to attackers.

    NFTs are also a lucrative target for attackers, with NFT frauds being common in the last year. Such novel market sub-sectors have yet to be insured or protected against, and in the worst circumstances, even audited, leaving them vulnerable to exploitation.

    Even Coinbase has been subjected to cyber-threats. A white hat hacker recently informed Coinbase of a “market-nuking” exploit, which stopped it from being a victim of that exploit. Coinbase quickly fixed the problem.

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