April 19, 2024
Hedgey Finance: $44.5M Crypto Theft Shakes Markets
Altcoins News

Hedgey Finance: $44.5M Crypto Theft Shakes Markets

Token infrastructure platform Hedgey Finance has been rocked by a staggering $44.5 million digital asset theft, occurring within a mere two-hour timeframe across Ethereum’s layer-2 network Arbitrum and Binance Smart Chain.

Exploitation Unveiled

Blockchain security firm Cyvers revealed that a malicious actor exploited Hedgey’s “createLockedCampaign” function, utilizing flash-loaned funds to execute the theft.

Modus Operandi

The breakdown of the theft illustrates the cunning strategy employed by the attacker. Initially, $1.9 million was siphoned off, swiftly converted to the DAI stablecoin, and whisked away to an external address. Subsequently, the attacker replicated the exploit on the Arbitrum chain, amassing a staggering $42.8 million haul after receiving funding on the ETH Chain via FixedFloat.

Call for Collaboration

Despite Cyvers’ detection efforts, attempts to reach Hedgey Finance’s team were futile. Cyvers emphasized the necessity of enhanced collaboration between decentralized applications (dApps) and security firms to mitigate risks and restore trust within the ecosystem.

Immediate Fallout

In the aftermath of the attack, the primary holder of the BONUS token, a native digital asset of BonusBlock, emerged as a suspicious address. CoinMarketCap data reflects a 10% drop in the asset’s value to $0.5084 following the incident. Notably, the attacker wasted no time in liquidating some of the stolen assets, transferring over 200,000 BONUS tokens valued at $110,000 to the Bybit exchange.

Ongoing Investigation

Hedgey Finance has launched a comprehensive investigation into the breach and urged users with active claims to cancel them promptly using the “End Token Claim” feature on the platform’s website. The firm assured its commitment to collaborating with auditors and the internal team to thwart ongoing threats, promising transparency as insights unfold.

Rise of Fraudulent Accounts

In the wake of the attack, several fraudulent accounts posing as the Hedgey protocol have emerged on social media platform X. These nefarious actors are coaxing hacked platform users into soliciting refunds or retracting their smart contract approvals through dubious phishing links.

Conclusion 

As Hedgey Finance grapples with the aftermath of this colossal breach, the incident serves as a stark reminder of the ever-present risks within the burgeoning crypto landscape, underscoring the imperative for heightened security measures and collaborative efforts to fortify the ecosystem against malicious actors.

Image by flatart on Freepik

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