What Happened

Today, September 28th 2019, the Fusion swap wallet (0x8e6bDa71f3f0F49dDD29969De79aFCFac4457379) was compromised, resulting in theft of 10 million native FSN and 3.5 million ERC20 FSN token. Investigations so far show that this is the only wallet affected. Furthermore, as of now, we have not received any report that other holders’ wallet were impacted.

After the currency was stolen, abnormal wash-trading behaviour occurred, and some of the stolen tokens were sold across exchanges, in particular Bitmax and Hotbit.

Cause

Compromise of the swap wallet was due to the Private Key being stolen. The Fusion Protocol and technology itself has been and remains secure.

Remediation Actions Taken:

1. Primary exchanges OKEX, Huobi, Bitmax, Citex, Hotbit have suspended deposit and withdrawal of FSN tokens.

2. All remaining funds in the swap wallet have been transferred to a cold wallet

3. 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.

4. We are working urgently to recover the stolen currency through technological approaches.

The Foundation deeply regrets this incident and its impact on the path of Fusion’s innovation. While private key theft is an industry-wide risk and occurrence, we clearly must strengthen the protection around our private keys.

In the face of such a challenge, we ask for unity and support from our community members with each other and for the Foundation, to get through this trial.