Hedgey Protocol Hit by Cyber Attacks, $44.7M Lost

The Hedgey Protocol experienced a cyber attack resulting in a $44.7 million loss across Arbitrum and Ethereum blockchains.

The Hedgey Protocol was recently the target of a cyber attack that resulted in a significant loss of $44.7 million across two blockchain platforms, namely Arbitrum and Ethereum.

They carried out the attack within a short period of time. This attack has raised concerns about the security vulnerabilities in the decentralized finance (DeFi) ecosystem, underscoring the urgent need to implement stronger security measures.

Both the Arbitrum and Ethereum chains were the targets of the attack, according to Cyvers Alerts, a leading cybersecurity watchdog. The hack targeted the Hedgey Protocol implementation.

The astronomical sum of $42.8 million was siphoned off on the Arbitrum chain, with transactions originating from the suspicious arbiscan.io address 0xc724.

The Ethereum network lost an additional $1.9 million during this period. In a short amount of time, the perpetrators of the hack changed the stolen assets into DAI and then transferred them to an External Owned Account (EOA) located at the address 0xd84f on the etherscan.io platform, which made the recovery process much more difficult.

Evidence of additional transactions on the Arbitrum (ARB) chain was discovered by Cyvers Alerts, which indicates that there may be weaknesses inside the ecosystem.

Concerns Raised by Cyvers Alerts

Cyvers Alerts discovered a suspicious address carrying out a staggering $42.8 million worth of transactions. Additionally, we discovered that @FixedFloat on the Ethereum chain funded transactions on the ARB chain.

This discovery highlights the interdependence of DeFi platforms as well as the cascading impact of security failures. Cyvers Alerts has issued a clear appeal to Hedgey Finance, urging them to promptly address the expressed issues and provide transparent insights into the nature and scope of the cyber attack.

Hedgey Protocols Ongoing Response and Security Measures

In response to the attack, Hedgey Protocol didn’t waste any time sending out a security alert through its official Twitter account and immediately began conducting an exhaustive investigation into the security breach.

Information security experts are diligently investigating the root cause of the attack and implementing robust measures to prevent future exploits. As part of their proactive strategy, Hedgey advises its users to use the provided mechanism to cancel any active claims, thereby reducing the likelihood of potential losses and safeguarding their assets.

As the world of decentralized finance continues to expand, this incident highlights the essential need for implementing effective security mechanisms.