Hedgey Finance suffered a devastating blow on April 19 when two simultaneous exploits drained $44.7 million from the token infrastructure platform. The hacker utilized the ‘createLockedCampaign’ function with flash-loaned funds across multiple blockchains. Cyvers reported that Hedgey Finance suffered two exploits, one on the Ethereum (ETH) blockchain and another on the Arbitrum (ARB) network, resulting in a loss of $1.9 million on ETH and $42.8 million in ARB tokens on Arbitrum. On-chain analytics showed that the attacker’s address was funded from web3 crypto exchange ChangeNOW, and the stolen funds were converted to $DAI and transferred to an External Owned Account (EOA). Hedgey Finance promptly confirmed the incidents and advised users to cancel active claims to mitigate further risks. They are collaborating with security experts to investigate the vulnerabilities exploited during the attacks.
Crypto investors saw a decrease in hacks in March, with losses dropping nearly 50% compared to February, according to a PeckShield report. Despite over 30 hacking incidents resulting in $187.29 million in losses, this marked an improvement from the previous month’s $360 million. PeckShield also noted the recovery of $98.8 million in stolen funds. While March losses exceeded January’s, the first quarter of 2024 experienced a 17.5% reduction in losses compared to the same period in 2023. Data from Immunefi revealed that hacking remains the primary method of crypto theft, accounting for 95.6% of total losses, with fraud making up only 4.4%.
The attacker on Hedgey Finance was funded by ChangeNOW, a web3 crypto exchange, and deposited a portion of the stolen funds on the Bybit cryptocurrency exchange. All funds were quickly converted to $DAI and transferred to an EOA. Hedgey Finance urged users to cancel active claims and is investigating the attacks with internal and external security experts. PeckShield’s report showed that March saw a significant decrease in crypto hacks, with $98.8 million in stolen funds being recovered. Despite ongoing hacking incidents, the overall trend in 2024 showed a decrease in losses compared to the previous year.
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. The first quarter of 2024 saw a decrease in losses compared to the same period in 2023, with hacking remaining the primary method of crypto theft.
The crypto space experienced a decrease in hacks in March, with losses dropping nearly 50% compared to February. Despite over 30 hacking incidents resulting in $187.29 million in losses, this marked an improvement from the previous month’s $360 million. PeckShield also noted the recovery of $98.8 million in stolen funds. Data from Immunefi revealed that hacking remains the primary method of crypto theft, accounting for 95.6% of total losses, with fraud making up only 4.4%. The first quarter of 2024 showed a 17.5% reduction in losses compared to the same period in 2023. Hedgey Finance is working to address the recent exploits and collaborate with security experts to prevent further attacks.
