Fantom Foundation Rewards Analyst with $1.7 Million for Vulnerability Discovery

Fantom Foundation made headlines by recognizing an unnamed blockchain analyst for uncovering a vulnerability within their system. This discovery potentially averted a staggering $170 million loss for the project. The analyst's diligent investigation, triggered by a $550,000 breach in the fund's wallets on November 17, led to the identification of additional potential risks for the blockchain.

Following a cyberattack on the wallets, the Foundation incurred a 1% loss of its funds on November 17. Later, the company transferred ownership rights of some compromised wallets to its employee. Subsequently, an independent anonymous analyst revealed that one of the compromised wallets held the contract address for issuing native FTM tokens based on the ERC20 standard.

Had the attacker gained access to the contract, a substantial volume of FTM tokens could have been issued on the Ethereum blockchain. However, thanks to the analyst's work, the vulnerability was promptly addressed, preventing potential exploitation.

The Foundation emphasized its commitment to proactively resolving vulnerabilities before malevolent exploitation, ensuring a secure platform for developers and users. Their statement in the press release affirmed their dedication to rewarding those who identify such vulnerabilities, fostering a safer environment for the blockchain community.

Fantom, initiated in late 2019, enables the creation and deployment of decentralized applications (DApps). However, in July of the current year, the project suffered a $126 million loss in cryptocurrencies due to an attack on the Multichain bridge, causing it to cease operations.

As of November 21, FTM holds the 60th position in the cryptocurrency rankings, with a market capitalization of $853.52 million. It is trading on Binance at $0.3047, experiencing an 8.16% decrease in 24 hours. According to CoinGecko, there's been a 2.4% weekly decline in value.