Fantom Foundation Drainer Swaps 4,390 ETH for 8M DAI: PeckShield

• PeckShield reports that the Fantom Foundation drainer swapped 4,390 ETH for 8M DAI.
• A Fantom Foundation employee fell victim to a phishing attack by the drainer.
• The drainer stole about $7M from Fantom Foundation-labeled wallets on October 17.

PeckShield, the renowned blockchain security firm, shared on X that the Fantom Foundation drainer has swapped about 4,390 ETH for approximately 8 million DAI. The blockchain security firm noted that the drainer stole about $7 million in cryptos from Fantom Foundation-labeled wallets on October 17.

Per multiple reports, an employee of the Fantom Foundation fell victim to a phishing attack and lost approximately $7 million to a drainer. The employee reportedly received an email that appeared to be from a colleague requesting him to update his MetaMask wallet. Unknown to the victim, the link contained in the email led to a fake website that mimicked the official MetaMask website.

According to reports, The Fantom Foundation employee entered critical details on the fake website, including his seed phrase, a 12-word password that grants access to the wallet. That enabled the drainer to take control of his funds and drain them. Reportedly, the drainer stole 139,000 FTM tokens, worth about $3.5 million, and 2,000 ETH, equivalent to $3.8 million, from the wallet.

Following a report by the victim, the Fantom Foundation confirmed the incident, noting that approximately $550,000 of the Foundation’s funds were also affected. However, the organization assured its community of the platform’s security, as over 99% of its funds were unaffected by the drain.

The Foundation also clarified that even though some of the affected wallets were labeled “Foundation Wallets,” they were no longer utilized by the organization and had been reassigned to a Fantom employee.

One week after the incident, the Fantom Foundation announced the official launch of the Sonic Testnet. It included in the announcement that the new product aims to improve Smart Contract execution on the DeFi platform.