$445 Million Cryptos Stolen in Token Infrastructure Platform Hack

TLDR:

• Hedgey Finance, a token infrastructure platform, was hacked, resulting in a theft of $44.5 million in cryptocurrencies.
• The attack exploited a vulnerability in Hedgey’s function, showcasing a sophisticated understanding of the platform’s mechanics and security flaws.

Hedgey Finance, a prominent token infrastructure platform, experienced a significant theft of $44.5 million in cryptocurrencies. The attack was executed by exploiting a vulnerability in Hedgey’s “createLockedCampaign” function, allowing the attacker to steal funds on Ethereum’s layer-2 network Arbitrum and Binance Smart Chain. Despite efforts by the blockchain security firm, Cyvers, to detect anomalies quickly, communication with Hedgey Finance’s team was unsuccessful. The stolen assets were swiftly moved to an external address, impacting the cryptocurrency market and causing the value of the BONUS token to plummet. The attacker has also attempted to liquidate the stolen assets on the Bybit exchange, complicating recovery efforts.

In response, Hedgey Finance has launched an investigation and advised users to cancel active claims using the platform’s features. This incident underscores the need for collaborative efforts between decentralized applications and security firms to enhance communication and mitigate risks effectively. As the investigation continues, the cryptocurrency community is hopeful for the recovery of the stolen funds and the implementation of stronger security measures in the future.