DeFi Platform Hedgey Finance Suffers $44 Million Exploit

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Recently, Hedgey Finance, a decentralized finance platform, suffered security breaches on two different blockchains, leading to losses of roughly $44.7 million. Specifically, on the Arbitrum network, attackers managed to steal around $42.8 million worth of ARB tokens.

Cyvers, a business specializing in on-chain security, announced that some of the stolen funds have been moved to the Bybit digital currency exchange. Previously, there was a hack on the Ethereum network resulting in the theft of approximately $1.9 million worth of various cryptocurrencies.

🚨BREAKING NEWS🚨 Hedgey Finance announces a security breach affecting their Hedgey Token Claim Contract. The estimated damage is approximately $1.9 million. It’s been discovered that the attacker received funding from ChangeNOW_io.

— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) April 19, 2024

Platform Response and Security Measures

After finding out about these security issues, Hedgey Finance has acknowledged the events in a statement and is now working with cybersecurity experts to investigate the root causes.

To minimize additional risks, Hedgey’s platform recommends that users terminate any ongoing claims using the “End Claim Token” function. Unfortunately, there has been an increase in fraudulent accounts pretending to be Hedgey, adding complexity for users looking to safeguard their assets.

In the first quarter of 2024, Decentralized Finance (DeFi) experienced a substantial jump in security threats, leading to over $500 million in losses due to exploits. This represents a noticeable rise compared to the previous year. The escalating number of cyber attacks serves as a stark reminder of the importance of robust security measures on all crypto platforms. By fortifying these safeguards, we can protect user assets and preserve trust within the DeFi sector.

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2024-04-19 23:32