WEB3
by BSCN
April 19, 2024
The attacks led to significant losses on both the Arbitrum and Ethereum blockchains—$42.8 million and $1.9 million, respectively.
Hedgey Finance, a decentralized finance (DeFi) platform known for supporting decentralized autonomous organizations (DAOs) with token distribution services, has become the latest victim of a significant cyberattack.
According to reports from Cyvers Alerts and blockchain security firm CertiK, Hedgey Finance was exploited for a total of $44.7 million across the Arbitrum and Ethereum blockchains.
The attackers targeted vulnerabilities within Hedgey Finance’s on-chain token infrastructure protocol. Using the ‘createLockedCampaign’ function, they leveraged flash-loaned funds to gain authorization for token expenditures from the victim contract.
This breach led to the loss of USDC, NOBL, and MASA tokens. Following the theft, the attackers converted the stolen assets into DAI through sales.
Hedgey Finance reported on the attack via the social media platform X, warning users with active claims in the Hedgey Token Claim Contract to cancel them to prevent further losses.
Security Alert: We're investigating an attack on the Hedgey Token Claim Contract. If you have created active claims, please cancel them using the "End Token Claim" button at https://t.co/Tt7Aq0n2dh.
— Hedgey 🦔 (@hedgeyfinance) April 19, 2024
We are are actively working with our auditors and team to understand the attack…
The platform is reportedly investigating the incident and likely working on measures to prevent future attacks.
This incident is part of a broader trend of increasing attacks on DeFi platforms. According to Cyver Alerts, the total stolen value in the first quarter of 2024 reached approximately $739.7 million, highlighting a significant risk in the DeFi ecosystem.
Notably, Ethereum remains the most targeted blockchain, suffering the majority of the total value lost in attacks during this period. The Bitcoin network and Binance’s BNB Chain also reported major incidents.
Despite having fewer attacks, February witnessed a disproportionately high financial impact with about $405.3 million lost.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
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