Fantom Foundation, the entity behind the Fantom blockchain network, has awarded a bounty of $1.7 million to a security researcher for averting a potential hack of $170 million.
The official blogpost from Fantom Foundation shares that the security researcher identified an additional risk associated with the previous exploit which resulted in a loss of nearly $550k in October.
According to the blog, the affected wallet address was reassigned to a Fantom team member which held a dormant admin token for the FTM ERC20 token contract. It could enable the exploiter to mint a portion of FTM on Ethereum.
A potential hack could have caused damage of $170 million but the security researcher reached out to the Fantom team and the incident was mitigated. As the vulnerability was associated with FTM token, the estimated amount for the hack could have varied on the token market price.
The bounty awarded to the unidentified security researcher represents 1% of the potentially affected funds.
“The Fantom Foundation is dedicated to upholding the highest security standards for our platform, and we remain grateful for the security researchers who contribute to this effort,” said Fantom. “By addressing these weaknesses before they’re exploited maliciously, we ensure a secure platform for both developers and users.”