Fantom[1] is one of the biggest DeFi chains in the space with over 201 protocols and $6.28 billion locked onto it. One such protocol, Fantasm, Finance recently fell victim to an exploit in which over $2.6 billion were stolen.
Needless to say, the exploit resulted in a much more significant impact on Fantom itself.
The Fantom exploit continues to haunt
Post the FSM exploit event[2], the team published a post mortem report highlighting what went wrong. As per the report, the exploiter managed to pass his BNB through multiple gateways in order to bring them to Fantom and then deployed a contract that triggered the exploit.
The exploit resulted in consistent XFTM minting, which the exploiter sold for FTM. Finally, all the FTM was sold for $2.6 billion worth of ETH and siphoned through Tornado.
In addition to the forensic analysis, the Fantasm Finance team also announced that they would make use of the 174 million FTM accumulated in protocol fees to repay the FSM holders. Additionally, after realizing the exploit, the team managed to whitehack 935,415 FTM. These proceeds will also go towards re-compensating the losses.
Furthermore, the entire protocol will be relaunched with a new DAO for the decision-making process of the protocol.
Alas, despite these efforts, FUD has already affected investors considerably. In fact, within 24 hours of the exploit, 15 million FTM was sold back into exchanges.
Fantom balance on exchanges | Source: Santiment – AMBCrypto[3]
This was followed by a streak of price falls in which FTM lost 19.45% of its value and the long-standing support of $1.15.
At the time of writing, the altcoin was trading at $1.09 – Its lowest point since 21 September 2021.
Fantom price action | Source:
