Fogo has brought its mainnet back online after recovering 237 million of the 400 million FOGO tokens stolen in a security incident tied to the Fogo Foundation. The Layer 1 network had been halted on Aug. 29 as the project tried to prevent further movement of the affected tokens.

Fogo said the recovered tokens have been permanently removed from the token’s total supply. The project has not explained how the recovery was achieved or how the tokens were removed, and it says efforts to recover the remaining 163 million FOGO are still underway with centralized exchanges and law enforcement.

Network resumes after emergency halt

The restart follows a chain stop that began a day after the incident was first disclosed. On Aug. 28, the Fogo Foundation said an unknown actor had compromised the organization and transferred 400 million FOGO to a “bad actor.” At that stage, the foundation said the blockchain itself had not been affected and remained operational.

That position changed on Aug. 29, when Fogo halted the network while validators prepared an upgrade. The stated goal of the pause was to stop any further movement of the stolen tokens, and the project did not give a timeline for resuming operations when it announced the shutdown.

How much has been recovered

According to Fogo’s latest update, 237 million FOGO has now been recovered from the original 400 million taken during the compromise. That leaves 163 million FOGO that has not been reported as recovered.

The stolen amount was significant relative to the token’s supply. The 400 million FOGO involved represented 4% of the network’s 10 billion-token genesis supply and more than 10% of circulating supply at the time of the incident. When the network was halted, FOGO was trading near $0.0075, implying an approximate value of $3 million for the affected tokens based on DefiLlama data.

Limited detail on the recovery process

Fogo has not published a full explanation of how the compromise happened. It also has not identified which addresses or internal systems within the foundation were breached, nor has it described the attack vector in its latest statement.

The project likewise did not provide further information on the mechanism used to recover the 237 million tokens or the method used to permanently remove them from supply. For now, Fogo says its investigation remains ongoing and has directed users to follow official channels for additional updates.

Exchange action and next steps

Trading-related restrictions began even before the foundation’s first public disclosure. Bitget suspended FOGO deposits and withdrawals about an hour before the initial announcement, citing wallet maintenance. KuCoin later imposed similar restrictions.

Fogo says recovery efforts for the remaining assets are continuing with centralized exchanges and law enforcement, alongside work by forensic specialists that was announced when the incident first came to light. The next confirmed step is the continuation of that investigation, as the project has yet to release a full post-incident report or account of the breach.

Source: crypto.news