A decentralized finance protocol (DeFI) has been hacked for millions of dollars via the Ethereum (ETH) and Arbitrum (ARB) blockchains.
In a new announcement, cybersecurity company Cyvers says say that the DeFi platform Hedgey Finance was breached by bad actors who stole at least $1.9 million in funds converted into the stablecoin Dai (DAI).
“Hedgey Finance has experienced a security breach with their Hedgey Token Claim Contract! The total loss is approximately $1.9 million. The attacker is funded by ChangeNOW_io. All stolen funds are exchanged and transferred to DAI [external address].”
According to Hedgey Finance, users should be Cancel active claims related to the Hedgey Token Claim Contract, which allows users to create token claims for recipients while having more control over when claimed tokens are unlocked.
“Security Alert: We are investigating an attack on the Hedgey Token Claim Contract. If you have created active claims, cancel them via the ‘End Token Claim’ button. We are actively working with our auditors and team to understand the attack and stop any ongoing attacks. We will share more information as we learn more.”
However, citing a since-deleted X-post from Cyvers, on-chain analyst Colin Wu say that Hedgey suffered a significantly greater loss totaling more than $44 million.
“According to Cyvers Alerts, the on-chain token infrastructure protocol Hedgey suffered an attack on the Arbitrum and lost approximately $42.8 million, and suffered the same attack on the Ethereum and lost approximately $1.9 million.
Hedgey’s official Twitter account has issued a security alert saying it is investigating the attack on the contract.”
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Featured image: Shutterstock/Prince Zaleski/AtlasbyAtlas Studio