How Did the $341,103 FET Phishing Attack in 2024 Impact Crypto Security?

$341,103 worth of FET stolen in major phishing attack using 'permit2' signature

A significant security breach has recently rocked the cryptocurrency community as cybercriminals managed to steal $341,103 worth of Fetch.ai (FET) tokens through a sophisticated phishing attack. According to monitoring data from Scam Sniffer, the theft occurred when an unsuspecting victim was tricked into signing a malicious "permit2" signature, which subsequently granted attackers access to their digital assets.

The "permit2" signature mechanism, developed as a convenience feature allowing multiple tokens to be approved with a single signature, has unfortunately become a target for exploitation by fraudsters. This attack follows a disturbing pattern of similar phishing schemes targeting crypto users through deceptive authorization requests.

The attack methodology typically unfolds in stages:

This incident highlights the critical importance of signature verification when interacting with decentralized applications. With FET currently trading at $0.2428 and ranking #128 by market capitalization, this theft represents a significant financial loss for the victim and serves as a stark reminder of the persistent security threats facing cryptocurrency holders.

FET token price drops over 10% due to legal dispute with Ocean Protocol

In October 2025, the Artificial Superintelligence Alliance (FET) token experienced a dramatic price decline exceeding 10% amid a severe legal dispute between Fetch.ai and Ocean Protocol. The conflict centered around Ocean Protocol's alleged conversion of 661 million OCEAN tokens to 286 million FET tokens, worth approximately $120 million at the time, which were subsequently moved to exchanges, creating significant market pressure.

The price impact was substantial, with FET's value showing remarkable volatility during this period:

Fetch.ai CEO Humayun Sheikh eventually offered to withdraw all legal action if Ocean Protocol returned the contested 286 million FET tokens to the Fetch community. Ocean Protocol countered by asserting that Ocean Expeditions, which controlled the tokens, had no legal obligations to the ASI Alliance.

The dispute originated from the 2024 ASI Alliance merger that combined Fetch.ai, Ocean Protocol, and SingularityNET under a unified token framework using FET as the central asset. This legal conflict contributed significantly to FET's overall 93% price decline from March 2024 to October 2025, severely affecting investor confidence in the project's governance structure and long-term viability.

5 million FET tokens transferred to DWFLabs raises concerns about centralization

On May 9, 2024, the FetchAI Foundation transferred 5 million FET tokens (valued at approximately $11.95 million) to DWF Labs, raising significant concerns about token centralization. This transaction, which was subsequently deposited into a major exchange, represents a substantial portion of the circulating supply in an ecosystem where token distribution was already concentrated.

The transfer's impact on token distribution is concerning when examining current ownership patterns:

This concentration contradicts Fetch.ai's governance principles designed to mitigate centralization risks. The project's tokenomics includes a maximum supply of 2.72 billion FET tokens with weekly unlock schedules specifically implemented to prevent concentrated ownership and ensure gradual distribution.

The transaction timing coincides with a significant price decline for FET, which dropped from $0.55 on October 1, 2025, to approximately $0.24 by October 31, 2025—a 56% decrease. Market data suggests institutional accumulation during this downturn while retail holders decreased their positions.

This transfer pattern raises questions about decentralization within the Artificial Superintelligence Alliance ecosystem, especially as the project transitions toward greater AI integration and utility for its token.

FAQ

Does FET coin have a future?

FET coin shows promise with its AI technology. While market volatility exists, long-term prospects look positive, potentially reaching $1.19 by end of 2025, according to some predictions.

What is the FET coin?

FET coin is an Ethereum token powering Fetch.ai, a decentralized machine learning platform. It enables asset trading and gig economy applications, incentivizing network participants.

Will Fetch.ai reach $100?

While Fetch.ai shows potential, reaching $100 is unlikely in the near future. Projections suggest a more modest growth to around $0.56 by 2025, but long-term prospects remain uncertain.

Will FET reach $5?

FET reaching $5 is possible given strong AI market trends and increased adoption. However, it depends on overall crypto market conditions and FET's technological advancements.