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Hedgey Finance Suffers Dual Exploits, Losing $44.7 Million in Funds

Hassan Shittu
Last updated: | 1 min read
A hooded figure hunches over a cityscape illuminated by lines of code, representing the hidden world of hackers and potential Hedgey finance exploits.
Hackers used flash loans to exploit Hedgey Finance, stealing $44.7 million in a swift attack across multiple blockchains.

Hedgey Finance suffered a devastating blow on April 19 when two simultaneous exploits drained $44.7 million from the token infrastructure platform.

During the two-hour attack, the hacker utilized the ‘createLockedCampaign’ function with flash-loaned funds across multiple blockchains.

Hedgey Finance Hacked: $1.9 Million Stolen on Ethereum, $42.8 Million on Arbitrum

Cyvers reported that Hedgey Finance suffered two exploits, one on the Ethereum (ETH) blockchain and another on the Arbitrum (ARB) network. The ETH attack resulted in a loss of $1.9 million, while the Arbitrum exploit led to a theft of $42.8 million in ARB tokens.

On-chain analytics showed that the attacker’s address was funded from web3 crypto exchange ChangeNOW, while the attacker swiftly deposited a portion of the stolen funds onto the Bybit cryptocurrency exchange.

All stolen funds have been converted to $DAI and transferred to an External Owned Account (EOA)

In response to the exploits, Hedgy Finance promptly confirmed the incidents and initiated a thorough investigation into the attack on their Token Claim Contract. They advised users with active claims to utilize the “End Token Claim” feature on their platform to mitigate further risks.

Hedgy Finance is collaborating with internal and external security experts to investigate the vulnerabilities exploited during the attacks and will provide further updates as new information becomes available.

Crypto Hacks Decrease by Nearly 50% in March: PeckShield Report

Crypto investors enjoyed a reprieve in March as losses from hacks plummeted by nearly 50% compared to February, according to a PeckShield report.

While the month still saw over 30 hacking incidents, resulting in $187.29 million in losses, this marked a notable improvement from February’s $360 million. PeckShield also highlighted the recovery of $98.8 million in stolen funds.

Despite the positive trend, March’s losses still exceed January’s, which saw $182.5 million disappear due to hacks. Looking at the broader picture, the first quarter of 2024 experienced a 17.5% reduction in losses compared to the same period in 2023.

Data from Immunefi further revealed that hacking remains the primary method of crypto theft, accounting for 95.6% of total losses, with fraud constituting a mere 4.4%.