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On-chain token infrastructure provider Hedgey Finance suffered two attacks when attackers exploited a bug in its token claiming contract.
According to security startup alerts twitter.com/CyversAlerts/status/1781271050073841735″ target=”_blank” rel=””>cyvers, Hedgey Finance was hacked on April 19 on the ethereum (eth) and Arbitrutm (ARB) blockchains. Cyvers reported that the first attack was implemented on the eth chain and hackers stole around $1.9 million worth of cryptocurrency.
On-chain analysis showed that the attacker's address was funded by the web3 crypto exchange ChangeNOW, while the stolen funds were exchanged into Maker's DAI stablecoin after the exploit.
Hedgey Finance issued a notice confirming the incident and said an investigation was underway. Users were advised to revoke token claim permission until further notice.
“We are actively working with our auditors and our team to understand the attack and stop any attacks in progress. We will share more information as we know more.”
twitter.com/hedgeyfinance/status/1781257581488418862″ target=”_blank” rel=””>Hedging Finance equipment
The protocol allows anyone to create an options market for digital assets, allowing users to buy and sell call and put options on cryptocurrencies issued on EVM-compatible chains. There is no listing requirement and users can immediately participate in peer-to-peer ERC20 options trading.
Hedgey Finance attacks ARB network
Shortly after the first alert, Cyvers issued a follow-up advisory pointing to a second attack. This time, hackers siphoned off $42.8 million and transferred part of the profits to Bybit. Attackers exploited the same Hedgey Finance vulnerability on both ethereum and Abritrum.
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The Hedgey Finance exploit echoes the view of security veterans that protocols must dedicate additional resources and expertise to safeguarding defi platforms. As cryptocurrencies continue to garner widespread attention, on-chain security will likely remain a top-of-mind topic for industry stalwarts and newcomers alike. However, statistics show that hacks may be decreasing.
Last month, Peckshield noted that crypto exploits decreased by 50%, resulting in lower losses for investors. White hat experts have also provided a help desk to report attacks in real time and distribute information exploitation strategies.
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