Fantom Foundation, a scalable blockchain platform, lost over $550,000 in cryptocurrency after its hot wallet was hacked, raising questions about the security of its enterprise applications.

Fantom Foundation is a highly scalable blockchain platform for DeFi, crypto dApps, and enterprise applications. It is now the latest firm to be attacked by online thieves. It was said that the hacking incident occurred due to a vulnerability in the platform’s Fantom wallet.

Probe on the Cyber Attack is Underway

The Fantom Network’s developer confirmed losing a huge amount of crypto through a post on social media. It said that the theft happened early Wednesday, Oct. 18, and they discovered that a small number of Fantom wallets were compromised. It assured its users that more than 99% of the Fantom Foundation funds were unaffected, and an ongoing investigation is ongoing.

“Some of these impacted wallets were labeled ‘Foundation Wallets,’ but they were no longer utilized by the organization and had been reassigned to a Fantom employee, making this a targeted personal attack,” the company posted on X, formerly Twitter. “The funds lost by the employee are currently being tracked and investigated.”

Who Hacked Fantom Foundation?

According to Crypto Potato, the Fantom Foundation has not yet identified the individual or group behind the attack. While the probe is underway, there is no new update, so the hacker remains unknown as of this moment.

Then again, a string of crypto hacks was recorded in the past few months, and all of them were said to have been traced back to the North Korean Lazarus Group. Elliptic, a group of blockchain investigators, said that the legal hacking organization was likely the culprit in the CoinEX breach in September and with Atomic Wallet in June.

There is a possibility that the same group was responsible for the $477 million FTX hack in November of last year. Thus, with all these incidents, it is easy to see why experts may also link the Lazarus Group to the Fantom Foundation’s case.

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