Fantom blockchain suffers another DeFi hack

By May 14, 2022DeFi
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Fantom

Fantom blockchain has succumbed to another hack attack in the decentralized finance market, pushing its native token, FTM, to experience a decline. The native token of the platform, FTM, is presently trading at $0.334, following a massive 15% drop over the last 24 hours. Coupled with the crypto crash currently riddling the market, the token has lost more than half of its value over the last few days.

Fantom suffers a 15% drop

According to SpiritSwap, an exchange housed on the Fantom blockchain, it has suffered a massive attack. In the statement by the platform, the malicious actors were able to steal about $18,000 during the breach. The breach caused the platform to pause activities to enable them to access the situation and prevent further losses. At the time of writing, SpiritSwap is yet to resume activities on the platform as it continues to step up efforts to apprehend the criminals.

Although the hack on SpiritSwap can be classified as one of the smallest in the market, it shows how simple the Fantom security architecture is among other blockchains. In order to portray a perspective, this hack is the fourth that will occur on the blockchain over the last three months. The recent one involved Deus Finance, with the platform breached in a flash loan attack that saw the hackers steal more than $13 million.

Crypto platforms suffer attack after GoDaddy breach

The first hack that occurred on Fantom over the last three months was the one involving Fantasm, which saw the platform’s security give way for hackers to steal $2.6 million. After that, Deus Finance saw its first attack. The increased success of attacks on platforms on the blockchain has caused investors to flee from the project. This is a testament to the over 86% that its native token, FTM, has shed over the year. Like it is presently doing, FTM has lost a significant amount of its value any time an attack occurs in any of the protocols on its blockchain.

SpiritSwap was not the only crypto project that witnessed an attack after a flaw in the GoDaddy hosting platform caused other crypto platforms to succumb to hack. One of the most popular victims of the hack is Polygon-based QuickSwap. Activities on the platform have also been suspended to find the perpetrators. However, it has been mentioned that users should not be on alert as their funds are still in safe custody. Although the full scale of the hack has not been determined, there is a consensus that the hackers breached the recovery process of the GoDaddy account to hit the platforms.

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