The highly reputable on-chain token infrastructure provider, Hedgey Finance, has been rocked by not one, but TWO daring exploits. Cunning attackers took advantage of a bug in their token claims contract, causing chaos in the world of digital currency.
The latest security alert from Cyvers has revealed a jaw-dropping breach on the popular Hedgey Finance platform. On April 19, hackers struck both the Ethereum and Arbitrutm blockchains, leaving a trail of devastation in their wake. According to Cyvers, the initial attack targeted ETH’s chain, resulting in a staggering $1.9 million worth of cryptocurrency being snatched by cybercriminals.
The digital sleuths of on-chain analytics have revealed a shocking discovery – the attacker’s devious address was initially funded through the renowned web3 crypto exchange, ChangeNOW.
The stolen funds were swiftly converted into Maker’s stablecoin DAI, further complicating the situation. In response to this brazen exploit, Hedgey Finance has issued a statement, assuring users that a thorough investigation is currently underway. As a precautionary measure, all users have been advised to revoke any token claim permissions until further notice.
“We are actively working with our auditors and team to understand the attack and stop any ongoing attacks. We will share more information as we learn more.”
Hedgey Finance team
Hedgey Finance hit on ARB’s network
Within moments of the initial warning, Cyvers sounded the alarm once again, revealing a second strike from the malicious hackers. This time, a staggering $42.8 million was drained from unsuspecting victims, with a portion of the stolen funds making their way to the notorious Bybit. The cunning culprits exploited the same weakness in Hedgey Finance, seizing assets from both Ethereum and Abritrum with ease.
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Echoing the concerns of experienced security experts, Hedgey Finance’s recent exploit serves as a stark reminder that defi platforms must prioritize allocating more resources and expertise towards safeguarding their protocols.
With the growing popularity of cryptocurrency in the mainstream, ensuring on-chain security is a pressing issue for both industry veterans and newcomers alike. Despite this, the latest statistics suggest that the frequency of hacks may be on the decline.
According to Peckshield, last month saw a significant 50% decrease in crypto exploits, resulting in fewer losses for the community. But that’s not all – white hat experts have stepped up their game by setting up a real-time help desk to report hacks and share valuable exploit strategies.