Hedgey Finance Experiences Two Exploits, Resulting in a Loss of $44.7 Million in Assets

Hedgey Finance faced a significant setback on April 19 when two concurrent exploits resulted in the theft of $44.7 million from the token infrastructure platform.

During the two-hour assault, the attacker employed the ‘createLockedCampaign’ function using flash-loaned assets across various blockchains.

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

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

UPDATE@hedgeyfinance has encountered a security breach involving their Hedgey Token Claim Contract!

The total loss amounts to approximately $1.9M. The attacker is financed by @ChangeNOW_io.

All misappropriated funds have been exchanged for $DAI and sent to an EOA at https://t.co/MT78LFSQ7G

We advise all users to… https://t.co/hwuBjTiebp

— Cyvers Alerts (@CyversAlerts) April 19, 2024

On-chain analytics indicated that the attacker’s address received funding from the web3 crypto exchange ChangeNOW, while a portion of the stolen assets was quickly deposited onto the Bybit cryptocurrency exchange.

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

Security Alert: We are 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.

We are actively collaborating with our auditors and team to comprehend the attack…

— Hedgey (@hedgeyfinance) April 19, 2024

In light of the exploits, Hedgey Finance promptly acknowledged the incidents and launched a comprehensive investigation into the attack on their Token Claim Contract. They recommended users with active claims to utilize the “End Token Claim” feature on their platform to reduce further risks.

Hedgey Finance is working with both internal and external security specialists to examine the vulnerabilities that were exploited during the attacks and will provide additional updates as more information becomes available.

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

Crypto investors experienced a respite in March as losses from hacks dropped by nearly 50% compared to February, as reported by PeckShield.

#PeckShieldAlert March 2024 saw over 30 hacks in the crypto sector, leading to approximately $187.29 million in losses, with around $98.8 million recovered.
This represents a decrease of about 48% from February 2024.#Top5 hacks:#Munchables (#Juice affected): $97 million (recovered)#CurioNetwork: $40… pic.twitter.com/u3zejt9Ygn

— PeckShieldAlert (@PeckShieldAlert) April 1, 2024

Although the month recorded more than 30 hacking incidents, resulting in $187.29 million in losses, this indicated a significant improvement from February’s $360 million. PeckShield also noted the recovery of $98.8 million in stolen assets.

Despite this positive trend, March’s losses still surpassed January’s, which recorded $182.5 million lost to hacks. In a broader context, the first quarter of 2024 saw a 17.5% decline in losses compared to the same timeframe in 2023.

Data from Immunefi further indicated that hacking remains the predominant method of crypto theft, accounting for 95.6% of total losses, while fraud represented only 4.4%.

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