The Fusion Protocol Loses $6M Worth of Tokens in a Hack Attack

A computer hacker compromised The Fusion Protocol‘s main swap wallet and stole 10 million native FSN and 3.5 million ERC20 FSN token. The lost tokens worth $6.4 million at the time of the hack.

According to Fusion’s blog post, the attacker was able to obtain the private keys of Fusion’s swap wallet 0x8e6bDa71f3f0F49dDD29969De79aFCFac4457379 and then he/she transferred the tokens to another wallet 0xd58868ebF4900B8c444D42D2E3ffe21cB8f0E655.

The attacker attempted to send some of the stolen funds to different cryptocurrency exchanges, and some of the stolen tokens were sold across exchanges, in particular Bitmax and Hotbit.

After the attack, FSN token price dropped significantly and lost around 50% of its value. The price dropped from $0.45 to below $0.22 in few hours.

Fusion Protocol (FSN) Price Chart

Cryptocurrency exchanges OKEx, Huobi, Citex, Bitmax, and Hotbit have since suspended deposits and withdrawals of FSN tokens.

The Foundation deeply regrets this incident and its impact on the path of Fusion’s innovation. While private key theft is an industry-wide risk and occurrence, we clearly must strengthen the protection around our private keys.

From fusion’s post

What is Fusion Protocol (FSN)?

Fusion is an ERC-20 token based on the Ethereum blockchain. Fusion (FSN) bills itself as an all-inclusive blockchain-based financial platform that offers cross-chain, cross-organization, and cross-data source services through smart contracts. The project uses the Hierarchical Hybrid Consensus Mechanism (HHCM), which amalgamates elements from PoW, PoS, and parallel computing with the goal of creating an efficient and “safe platform“.