Hedgey Finance Faces Double Exploits, Losing $44.7 Million in Funds

Hackers Exploit Hedgey Finance Using Flash Loans

Recently, hackers targeted Hedgey Finance, executing a swift attack across multiple blockchains using flash loans. The attack resulted in a staggering $44.7 million loss for the platform.

Details of the Exploits

• The hacker leveraged the ‘createLockedCampaign’ function during a two-hour attack.
• Two simultaneous exploits occurred on the Ethereum and Arbitrum blockchains.
• The Ethereum attack led to a $1.9 million loss, while the Arbitrum exploit resulted in a theft of $42.8 million.

Response and Investigation by Hedgey Finance

Hedgey Finance promptly confirmed the incidents and initiated a thorough investigation into the attack on their Token Claim Contract. They advised users with active claims to utilize the “End Token Claim” feature to mitigate further risks.

The platform is collaborating with internal and external security experts to understand the vulnerabilities exploited during the attacks.

Crypto Hacks Report: Decrease in March

In March, crypto investors experienced a decrease in losses from hacks, with a nearly 50% reduction compared to February, according to a PeckShield report.

Key Findings from the Report

• March witnessed over 30 hacking incidents, resulting in $187.29 million in losses.
• However, $98.8 million of stolen funds were recovered, marking a significant improvement.
• Despite the positive trend, March’s losses still exceeded those of January.

The first quarter of 2024 saw a 17.5% reduction in losses compared to the same period in 2023, indicating progress in combating crypto theft.

Insights from Immunefi Data

Immunefi data revealed that hacking remains the primary method of crypto theft, constituting 95.6% of total losses, while fraud accounts for only 4.4%.