Hedgey Finance, a decentralized finance (DeFi) platform, has had a security breach spanning two blockchains, resulting in a loss of almost $44.7 million. On the Arbitrum network, attackers successfully withdrew around $42.8 million in ARB tokens.
Cyvers, an on-chain security business, confirmed that some of the stolen funds had been transferred to the Bybit cryptocurrencycurrency exchange. Furthermore, an earlier intrusion on the Ethereum network resulted in the extraction of another $1.9 million in other cryptocurrencycurrencies.
To reduce additional risks, the platform advised its users to cancel any active claims using the “End Token Claim” option. In reaction to the exploits, there has been an increase in scam accounts that falsely represent Hedgey, exacerbating the situation for users wanting to protect their investments.
Following the discovery of these breaches, Hedgey Finance released a statement admitting the occurrences and stating that it is working with security auditors to investigate the underlying flaws.
These occurrences show persistent security issues in the DeFi sector. Over $500 million was lost in the first quarter of 2024 alone as a result of similar attacks, a considerable rise over the previous year. This increase in cyber crime highlights the critical need for improved security standards across all cryptocurrencycurrency platforms to protect user assets and retain trust in decentralized financial systems.
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