Fusion Network, a blockchain-based stablecoin exchange, has announced that $6.4 million USD worth of FSN tokens have been taken from a compromised wallet.

The foundation in charge of the network revealed the theft in a blog post on Saturday, September 28. The post stated that one of the network’s wallets, containing 10 million of the Fusion Network’s native FSN tokens and 3.5 million ERC-20 FSN tokens had been emptied. The blog post went on to suggest that the theft may have been an inside job: “There is uncertain evidence showing that theft may have been caused by personnel related to the Fusion Foundation.”

“The Foundation deeply regrets this incident and its impact on the path of Fusion’s innovation,” said the firm. “While private key theft is an industry-wide risk and occurrence, we clearly must strengthen the protection around our private keys.” The theft represents nearly 25% of FSN token total market capitalization.

The Fusion Network was launched last summer with the intention of providing legacy institutions with access to blockchain by facilitating the transfer of stablecoins, coins backed against a fiat currency, and other digital coins. The Fusion Foundation, which oversees the network, is a non-profit organization based in New York headed by CEO DJ Qian, who revealed details of the FSN tokens theft via a Telegram group.

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Speaking to CoinDesk, Fusion’s Chief Product Officer John Liu said that the foundation is aware of the thief’s identity and has plans in place to demonetize the stolen FSN tokens. “This is not a newbie hacker. This criminal has been preparing this in advance. He was well prepared to implement this.” Liu added that the foundation’s method for isolating the stolen funds cannot yet be disclosed. The value of FSN tokens immediately halved following the breach, dropping from around $0.50 to $0.25 in a seven-hour period.

The news comes just a month after McAfee released its Threat Report, which pointed out that crypto-jacking was on the rise.

Featured Image: DepositPhotos © SergeyNivens

VANCOUVER, British Columbia, Sept. 30, 2019 (GLOBE NEWSWIRE) — LiteLink Technologies Inc. (“LiteLink”) (CSE:LLT) (OTC:LLNKF) (FRA:C0B), a key player in logistics platforms and payment solutions, is pleased to announce that its subsidiary uBUCK Technologies SEZC (“uBUCK”) has closed the first tranche of a non-brokered private placement previously announced on September 23, 2019.

In connection with the placement, uBUCK issued 800,000 preferred shares to a strategic investor at a price of $0.50 per share for gross proceeds of US$400,000. Under the terms of the investment, uBUCK expects a minimum investment of US$1,500,000 will be made in exchange for 3,000,000 preferred shares at a price of US$0.50 per share by June 30, 2020. The investor will also have the option to invest an additional US$2,500,000 for a total of 8,000,000 preferred shares at a price of US$0.50 per share by September 30, 2021

uBUCK intends to use the gross proceeds of the private placement to complete the development of the uBUCK and Streambucks digital wallets, accelerate growth, increase customer acquisitions, and conduct additional product testing.

The private placement is a non-dilutive transaction for LiteLink shareholders.  Completion of additional investments is subject to all necessary regulatory approvals.

The initial investment of US$1,500,000 would give the investor a 6% ownership in uBUCK, and an additional US$2,500,000 investment would result in a 16% ownership in uBUCK, based on the total outstanding equity in uBUCK. The preferred shares come with first rights to dividends of 6% (of the amount invested) and first claims to assets up to the investment in case of liquidation.

About uBUCK Technologies SEZC

Based in Georgetown, Cayman Islands, uBUCK Tech is a fintech enterprise that specializes in digital payments and wallets. uBUCK Pay, its online payments platform and pin voucher solution, offers consumers, businesses and merchants a fast, commission-free and highly secure alternative to traditional payments.  Customers can purchase pin vouchers within the uBUCK Pay app or at participating resellers. For details about uBUCK Pay, please visit uBUCKpay.com.

About LiteLink Technologies Inc.

LiteLink Technologies Inc. (“LiteLink”) (CSE:LLT) (OTC:LLNKF) (FRA:C0B) is a major player in developing world-class enterprise platforms that utilize artificial intelligence, blockchain, and predictive analytics to solve fragmented and outdated technology problems in the logistics and digital payment industries.  Our flagship 1SHIFT logistics platform offers real-time transparency and tracking which allows brokers, shippers, and carriers to track shipments and settle payments in real-time.

Forward-looking Statement

This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”, “forecast”, “may”, “schedule” and other similar words or expressions identify forward-looking statements or information.  These forward-looking statements or information may relate to the nature of the business of LiteLink and uBUCK, and other factors or information. Such statements represent LiteLink’s current views with respect to future events and are necessarily based upon a number of assumptions and estimate that, while considered reasonable by LiteLink, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties.  Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. LiteLink does not intend and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules, and regulations.

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