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DeFi Project Fantasm Finance Hacked; Loses $2.6 Million



DeFi Project Fantasm Finance hacked; Loses $2.6 Million

Decentralized finance (DeFi) project, Fantasm Finance was hacked resulting in a loss of nearly 1,007 ETH, estimated to be worth around $2.6 million.

The crypto market has long been subject to attacks, and the decentralized finance (DeFi) market has been especially vulnerable to them. One of the biggest DeFi attacks happened in August 2021, when $600 million worth of various cryptos were stolen across multiple networks including Ethereum, Polygon, and Binance Smart Chain.

A Grim Day For DeFi Project- Fantasm Finance

In yet another long list of DeFi exploits, Fantasm Finance, which is a DeFi project aimed at developing and popularizing synthetic tokens for the Fantom Ecosystem, was attacked by cyber criminals witnessing a loss of around $2.6 million.

On March 9, Fantasm Finance team warned users to redeem their Fantasm tokens (XTFM) as the DeFi project’s collateral reserve has been exploited. They said that some of the FTM collateral was “white hacked,” a process that refers to exploiting a protocol to flag security concerns. The Fantasm team tweeted,

URGENT ANNOUNCEMENT : Redeem your XFTM Our FTM collateral reserve has been exploited, there is still 1,820,012 FTM pool balance remaining currently for redemption. We are looking into this right now, more details to follow immediately.”

According to blockchain security company, PeckShield, the cyber perpetrator had been using Tornado Cash, a decentralized as well as non-custodial privacy solution that is built on Ethereum, to mask the transactions. Fantasm Finance team has already issued an apology to the community saying that the matter is being currently undertaking a post mortem with possible compensation options. They commented,

“Dear Community, we apologize for the exploit event which just happened. A Post Mortem with compensation options will be published by tomorrow. We are analyzing the exploit right now.”

Fantasm Finance’s Recent Developments

Fantasm Finance hacked; Loses $2.6 Million

Fantasm Finance has recently introduced the FantasticDAO. The decentralized autonomous organization (DAO) will allow users to have a decentralized control over the project, it’s future directions and the platform’s strategic matters. In an official blog post, the DeFi project had laid down its expansion plans saying the platform intends to expand onto other ecosystems such as strong L1 networks like Avalanche, BNB, Polygon, Solana, Terra and Cardano. L2 networks Arbitrum and Metis are also in scope.

However, off late the Fantom Network and its related projects have been experiencing a downturn in their investments for several reasons. One major reason is the departure of Andre Cronje, a key personnel of the Fantom Foundation, which made headlines across the crypto world.