In a scary turn of events in the world of cryptocurrencies, Hedgey Finance, a well-known on-chain token infrastructure provider, lost $44.7 million today due to two separate attacks. Hackers were able to get into Hedgey Finance’s operations on both the Ethereum (ETH) and Arbitrum (ARB) blockchains because of a bug in its token claims contract.
According to reports from the security company Cyvers, the first breach happened on the Ethereum network, where hackers stole cryptocurrencies worth about $1.9 million. Based on a study of the blockchain, the attack started with money that came from the web3 cryptocurrency exchange ChangeNOW. After the hack, the stolen money was put into Maker’s stablecoin, DAI, to hide it.
Hedgey Finance Urges Caution Amid Breach Calls for Enhanced DeFi Security
In a statement confirming the breach, Hedgey Finance asked users to be careful and remove their rights to make token claims until further notice. The breach is still being investigated. The platform stressed the importance of strengthening security measures in decentralized finance (DeFi) protocols. It lets users trade calls and puts on cryptocurrencies across EVM-compatible chains and creates options markets for digital assets.
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
Soon after, Cyvers found a second attack on the Arbitrum network. People who broke in were able to take $42.8 million. The hackers used the same weakness in Hedgey Finance’s systems as in the earlier Ethereum hack. Some stolen funds were sent immediately to the Bitcoin market Bybit.
The bug shows that DeFi systems must prioritize strong security measures as threats worsen. People are becoming increasingly interested in Bitcoin, so keeping the integrity of on-chain systems safe is still very important. We now know that crypto attacks are happening less often, even though this event was very scary.
Peckshield, a blockchain security business, says that cryptocurrency hacks have dropped by 50% in the last few months. This means that buyers have lost less money. The environment is also safer thanks to the work of “white hat” experts who share information on exploiting weaknesses and offer real-time ways to report hacks.
With the investigation into the Hedgey Finance breaches still going on, cryptocurrency users are informed of how important it is to make DeFi platforms safer so that users don’t fall for future attacks and keep trusting the growing ecosystem of digital assets.
