Fusion Says $6.4 Million Token Theft Likely an Inside Job

Neil Dennis

Investigators probing Saturday's theft of cryptocurrency worth around $6.4 million from the Fusion wallet believe the crime may have been an inside job, according to a company blog.

On September 28, a private key was stolen and the wallet was compromised resulting in the theft of 10 million native FSN tokens and 3.5 million ERC20 FSN tokens. The Fusion Protocol is a blockchain-based platform that exchanges stablecoins and other tokens.

Remediation Action

The company announced it had taken a number of actions to help mitigate the losses, including the suspension of deposits and withdrawals of FSN tokens on primary exchanges - including Bitmax, Hotbit and OKEX. The Medium blog added:

Abnormal transactions are currently being tracked, and there is uncertain evidence showing that theft may have been caused by personnel related to the Fusion Foundation. The Foundation is working closely with exchanges to gather further information and evidence.

The company said it was working urgently to recover the stolen currency through "technological approaches" and that it "deeply regrets" the incident and its impact on the "path of Fusion's innovation". It concluded:

While private key theft is an industry-wide risk and occurrence, we clearly must strengthen the protection around our private keys.

 

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