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Cybersecurity Alert: Hedgey Finance Falls Victim to $44.5 Million Exploitation
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Cybersecurity Alert: Hedgey Finance Falls Victim to $44.5 Million Exploitation

2024-04-20 by Ndaman Olayinka 4 minutes read
Cybersecurity Alert: Hedgey Finance Falls Victim to $44.5 Million Exploitation

Hedgey Finance, a leader in onchain token vesting, experienced an attack and a significant security breach, resulting in a total loss of around $44.5 million.

However, as of the time of writing, Cyvers, the Web 3 security firm, published that it had detected multiple more transactions on Arbitrum (ARB). This means that Hedgey suffered an attack, losing about $42.8 million on the Arbitrum after suffering the same attack on the Ethereum (ETH) and losing about $1.9 million. The stolen ETH funds have since been converted to the ERC-20 $DAI stablecoin.

Cyvers stated that the team tried to reach out to Hedgey Finance but didn't get any response. The attacker executed the same vulnerability on the ARB chain and exploited around $42.8 million.

Early reports from real-time security alerts on the Cyvers platform reveal that Hedgey Finance experienced security breaches with their Hedgey Token Claim Contract. According to Cyvers, the hacker was funded through the WEB 3 Crypto Exchange, ChangeNOW, and it urged all users to “revoke all approvals to prevent further loss.
 
In response to the crisis, via a security alert published on the Hedgey Finance X handle (formerly known as Twitter), it publicly acknowledged the exploit and assured users that they were investigating the attack and addressing the issue.

The firm stated, “We are actively working with our auditors and team to understand the attack and stop any ongoing attack. We will share more information as we learn more.”

Furthermore, for the on-chain token infrastructure protocol, Hedgey advised users who have any active claims to please cancel them by clicking the "End Token Claim" button on the website and be careful of scammers.

Hedgey Finance is a crypto platform created to facilitate on-chain token infrastructure that companies use to distribute tokens to their team, investors, and community. It is trusted by Arbitrum, Celo, Gitcoin, and 40+ leading On-chain organizations for vesting, lockup, and streaming solutions.

 

Disclaimer: This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.