DeFi Protocol Hedgey Finance Suffers $44M Hack
The platform suffered two parallel attacks on Arbitrum and Ethereum.
By: Pedro Solimano • Loading...
DeFiIt looks like Hedgey Finance didn’t hedge itself.
DeFi platform Hedgey Finance suffered two attacks early Friday, resulting in $44 million of losses. One attack took place on Arbitrum, where $42.8 million worth of ARB tokens were drained, while the second occurred on Ethereum and saw $1.9 million stolen.
Users and the Hedgey Finance team were alerted to the first attack by cybersecurity firm Cyvers Alerts. According to the company, attackers initially stole $1.9 million in ETH, swapping it later to DAI.
Cyvers Alerts also posted that the attacker was funded by Change Now, a non-custodial crypto exchange.
Less than two hours later, the Hedgey Finance team acknowledged the attack and requested users to cancel any active claims on their platform.
“Security Alert: We're investigating an attack on the Hedgey Token Claim Contract,” reads a post by the Hedgey Finance social media team. “If you have created active claims, please cancel them using the "End Token Claim" button on the website.”
A number of protocols were affected, including the Decentralized Science (DeSci) project Noble Blocks, which had a vesting contract with Hedgey.
Hedgey Finance helps teams create and manage on-chain token vesting, lockups, and claim portals. According to its X profile, it works with Celo, Gitcoin, Arbitrum, and other crypto projects.
According to some blockchain sleuths, the Ethereum-based hack happened due to one line of code.
The team is yet to publish an update on the situation.
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