- Hedgey Protocol suffered a loss of $44.7 million in dual cyberattacks.
- The protocol was targeted at both Arbitrum and Ethereum chains.
- Hedgey advises users to cancel active claims and revoke approvals during the ongoing investigation.
Hedgey Protocol, a decentralized finance (DeFi) platform, finds itself in the grip of a cyber siege after suffering a devastating attack that resulted in a staggering $44.7 million loss across the Arbitrum and Ethereum blockchains.
Cyvers Alerts, a leading cybersecurity watchdog, has uncovered vulnerabilities exploited in the attack, raising urgent concerns about the security environment in the DeFi ecosystem.
Hedgey Protocol hacked on Arbitrum and Ethereum chains
Cyvers Alerts revealed that the attack targeted the Hedgey Protocol on the Arbitrum and Ethereum chains, with $42.8 million and $1.9 million stolen respectively.
According to Cyners Alerts, the attackers quickly converted the stolen funds to DAI, complicating recovery efforts. In addition, other transactions on the Arbitrum chain signaled potential vulnerabilities in the ecosystem, which required immediate action.
In response, Hedgey Protocol acknowledged the attack and said it has launched a comprehensive investigation into the breach and is working closely with security experts and auditors to understand the root cause of the attack.
As the investigation unfolds, Hedgey Protocol has issued urgent notices to its users, urging them to cancel active claims and revoke all approvals to mitigate the risk of further abuse. They recommended an immediate approval review during the investigation to ensure the safety of users and prevent any potential loss of funds. In addition, users were warned to remain vigilant against scammers trying to take advantage of the situation and stressed the importance of prudent online behavior.
Security Notice: We are investigating an attack on the Hedgey Token Claim Contract. If you have created active claims, please cancel them using the “End Token Claim” button at https://t.co/Tt7Aq0n2dh.
We are actively working with our auditors and team to understand the attack…
— Hedgey 🦔 (@hedgeyfinance) April 19, 2024
The Hedgey Protocol cyberattack underscores the interconnectedness of DeFi platforms and the necessity of robust security protocols in the evolving landscape of decentralized finance.
As stakeholders work together to address vulnerabilities and strengthen security measures, the incident serves as a stark reminder of the ongoing challenges posed by cyber threats in the digital asset space.
