Barely hours after suffering a $1.9 million hack on Ethereum, fast-rising token infrastructure project, Hedgey Finance has endured another exploit on Arbitrum. According to a Twitter post by an on-chain security firm, Cyvers, the hack incident resulted in the loss of about $44 million.
Cyvers added that the attacker has deposited a significant portion of the funds to Bybit. Despite detecting the threat early, Cyvers said it could not successfully reach the team behind Hedgey Finance. As such, the firm calls for more collaboration between dApps and on-chain security firms to address prevailing risks in the industry and rebuild trust.
While confirming the unparalleled attack, Hedgey Finance emphasized its commitment to working with auditors to unravel the circumstances behind the attack.
According to credible sources, the attacker first stole $1.9 million and immediately swapped the funds to DAI stablecoin. Later, the hacker unleashed the same attack on Hedgey Finance via the Arbitrum network to steal over $40 million.
In a Friday X post, Hedgey Finance said it has taken necessary measures to manage the menace of the attack and asked everyone who created active claims to cancel them through its “End Token Claim” button. Also, the token infrastructure project advised users to review all approvals while it investigates the vulnerability.
Hedgey Finance to reimburse affected users
Meanwhile, amid the crisis, numerous fraudulent accounts have emerged on X (Twitter). Some Hedgey Finance, however, warned its users to be wary of scammers who might want to take advantage of the incident. Also, the protocol created a portal for those affected by the hack to seek refunds. Hedgey affirms its commitment to ensuring that all victims of the attack are reimbursed accordingly.
Over the years, crypto hacks have become one of the major threats affecting the industry. According to a report by an on-chain security firm, Certik, the crypto industry suffered not less than 223 cases of hacks in the first quarter of 2024. These attacks led to the loss of over $502 million in crypto assets, representing a 54% increase when compared with the figure recorded in the first quarter of 2023.
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