Hedgey Protocol Under Cyber Siege, $44.7M Evaporates in Dual Attacks

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Recently, the Hedgey Protocol suffered a cyber assault, leading to a significant financial loss of approximately $44.7 million on two blockchain networks, Arbitrum and Ethereum. This incident has sparked worries about potential weaknesses in the Decentralized Finance (DeFi) sector and the necessity for advanced security solutions.

Cyvers Alerts, a well-known cybersecurity organization, reported that Hedgey Protocol was hit by an attack on both the Arbitrum and Ethereum networks. A significant amount of $42.8 million was stolen during this incident, with all transactions tracing back to the questionable address arbiscan.io (0xc724…).

At the same time, an extra $1.9 million was misappropriated on the Ethereum network. The thieves quickly exchanged the pilfered resources for DAI and moved them to an External Owned Account (EOA) with the etherscan.io address 0xd84f…. This makes recuperation efforts significantly more complicated.

Concerns Raised by Cyvers Alerts

Cyvers Alerts discovered concerning activity on the Arbitrum (ARB) network, indicating possible weaknesses in the system. A questionable wallet, detected by Cyvers Alerts, carried out transactions totaling an impressive $42.8 million.

Additionally, it was discovered that transactions on the ARB blockchain were financed by FixedFloat on the Ethereum blockchain, demonstrating the interconnectedness of decentralized finance (DeFi) systems and the potential far-reaching effects of cyber attacks. In response to these findings, Cyvers Alerts strongly urges Hedgey Finance to address the raised issues promptly and disclose clear information about the cyber attack, including its cause and scope.

Hedgey’s Ongoing Response and Security Measures

After the attack occurred, Hedgey Protocol quickly notified its followers on Twitter about the security issue and began an extensive examination into the cause. Expert investigators are currently working to determine the source of the breach and put in place robust safeguards to shield against any future misuse of weaknesses.

To help reduce potential losses and protect their assets, Hedgey recommends users terminate any current claims using the given process as part of their forward-thinking strategy. This occurrence emphasizes the significant role strong security measures play in the rapidly growing Decentralized Finance (DeFi) sector.

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2024-04-19 16:27