Fantasm Finance
Summary
Fantasm Finance was a fractional-algorithmic synthetic token protocol on the Fantom Opera blockchain, designed to maintain a synthetic FTM token (XFTM) backed partially by FTM collateral and partially by the protocol's native FSM token. On March 9, 2022, within days of its public launch, the protocol suffered a critical smart contract exploit that drained approximately $2.62 million from its collateral reserve pool. The attacker laundered the stolen funds through Tornado Cash and was never publicly identified; the protocol has since ceased operations with zero TVL remaining.
Connected Entities
1 entities · 10 linked investigationsTimeline(9 events)
2022-03-01
Fantasm Finance launches publicly on Fantom Opera, offering XFTM synthetic token minting backed by FTM and FSM collateral.
2022-03-09
Exploit executed at approximately 01:50 PM UTC. Attacker drains approximately $2.62 million (1,008 ETH) from the protocol collateral reserve by exploiting a mint function input validation flaw, allowing XFTM minting with zero FTM collateral.
2022-03-09
Fantasm team announces the breach publicly, urges all users to redeem XFTM and exit liquidity pools immediately. XFTM token falls 98% within 24 hours.
2022-03-09
Team executes a white-hack of remaining protocol reserves, recovering 935,415 FTM for distribution to affected XFTM holders.
2022-03-10
Fantasm Finance publishes official post-mortem detailing the vulnerability, attack flow, attacker addresses, and compensation plan.
2022-03-11
Distribution of 174,327.763 FTM in accumulated protocol fees to FSM stakers and lockers begins at 9:00 AM UTC.
2022-03-18
White-hacked FTM funds distributed to XFTM holders via snapshot at block height 32970600.
2022-03-25
Protocol announces planned collateral ratio adjustments and relaunch plans with new token and DAO governance.
2022-06-01
Protocol activity ceases. No meaningful relaunch occurs. TVL trends to zero.
Decision Log
- hash: 71kyEym78a5ruwdhGC7WKmrvFvpHQmDkztrCAYMchHow
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:51 AM
last updated: 5/28/2026, 5:31:45 PM
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