Hedgey Finance Hit by Multi-Chain Security Breach, Losses Estimated at $44.7 Million

Hedgey Finance, a decentralized finance platform, suffered security breaches on Arbitrum and Ethereum networks, resulting in a loss of approximately $44.7 million. Attackers stole $42.8 million in ARB tokens on Arbitrum and $1.9 million in cryptocurrencies on Ethereum. Cyvers, an on-chain security company, reported that some stolen funds were transferred to Bybit exchange. Hedgey Finance acknowledged the breaches and advised users to cancel active claims to mitigate risks. The incidents highlight ongoing security concerns in DeFi, with over $500 million lost to exploits in Q1 2024.

DeFi Platform Hedgey Finance Suffers Multi-Blockchain Security Breach, Losing $44.7 Million

New York, April 19, 2024 - Hedgey Finance, a decentralized finance (DeFi) platform, has fallen victim to a series of security breaches across multiple blockchains, resulting in the theft of approximately $44.7 million in cryptocurrency assets.

Arbitrum Breach

On the Arbitrum network, the perpetrators managed to siphon approximately $42.8 million worth of ARB tokens. Cyvers, an on-chain security firm, revealed that a portion of these stolen funds has since been transferred to the Bybit cryptocurrency exchange.

Ethereum Breach

An earlier breach on the Ethereum network led to the extraction of an additional $1.9 million in various cryptocurrencies. The security incident was first reported by Cyvers Alerts, a Twitter account that tracks cyber threats in the cryptocurrency industry.

Platform Response

In response to the breaches, Hedgey Finance has issued a statement acknowledging the incidents and stating that it is actively working with security auditors to investigate the underlying vulnerabilities.

The platform has urged its users to cancel any active token claims using the "End Token Claim" feature to prevent further potential losses. Hedgey Finance has also warned of an increase in scam accounts falsely claiming to represent the platform, emphasizing the importance of vigilance when dealing with sensitive financial data.

Industry Concerns

The Hedgey Finance security breaches underscore the persistent security challenges facing the DeFi sector. According to industry data, over $500 million has been lost to similar exploits in the first quarter of 2024 alone, a significant increase from the previous year.

These incidents highlight the urgent need for enhanced security protocols across all crypto platforms to protect user assets and maintain trust in decentralized financial systems.

Ongoing Investigation

The investigation into the Hedgey Finance breaches is ongoing, with law enforcement and security experts working to track down the perpetrators and recover the stolen funds. The platform has pledged to keep users informed of any updates and to take all necessary steps to prevent future incidents.

About Hedgey Finance

Hedgey Finance is a decentralized finance platform that allows users to lend, borrow, and trade a variety of cryptocurrencies and digital assets. The platform's mission is to provide access to financial services for everyone, regardless of their location or financial background.

About Cyvers

Cyvers is an on-chain security company that provides real-time monitoring and threat detection for blockchain platforms. The company's mission is to protect the security of blockchain networks and the assets they hold.