Millions of Tokens Stolen from Fusion Foundation’s Private Wallet Hack

Millions of tokens have been taken from the Fusion Foundation, the non-profit tasked with keeping up the system of a similar name. 

In a blog entry, the foundation stated one of its wallets that contain 10 million of the Fusion Network’s native FSN tokens and 3.5 million ERC-20 FSN tokens had been depleted on September 28. The thief stole approximately $3.75 million at the time of writing.

The Fusion Foundation proceeded to suggest it might have been an inside job, stating:

“There is uncertain evidence showing that theft may have been caused by personnel related to the Fusion Foundation.”

The Fusion Foundation released its mainnet last summer and has been moving FSN tokens from the ERC-20 standard. The interoperability platform plans to bring legacy financial establishments to the blockchain by implementing the transfer of stablecoins and other digital currencies.

Chief Product Officer John Liu said In an interview that the foundation has a good understanding of who the hacker is as well as how to de-monetize their plunder.

“This is not a newbie hacker. This criminal has been preparing this in advance,” Liu said. “He was well prepared to implement this.”

Liu said the Foundation has been following the whereabouts of the coins and attempting to isolate them. To date, the vast majority of the stolen assets have been through exchanges Bitmax and Hotbit. As indicated by the foundation’s blog entry, cryptocurrency exchanges OKEX, Bitmax, Citex, Huobi, and Hotbit have quit accepting deposits and transfers of FSN.

As Liu mentioned, the foundation’s strategies for isolating the hacker’s assets can not be revealed until some other time later. With around 25 percent of the Fusion Network’s coins having been taken, a great deal is hanging on the line.

As per data provider Messari, FSN’s present market supply stands around 59 million with a market capitalization of $9.5 million at the time of writing.