Hedgey Protocol loses $44.7M in dual cyber attacks

• Hedgey Protocol suffers $44.7M loss in dual cyber attacks.
• The protocol was targeted on both Arbitrum and Ethereum chains.
• Hedgey advises users to cancel active claims, revoking approvals amid the ongoing investigation.

Hedgey Protocol, a decentralized finance (DeFi) platform, finds itself in the throes of a cyber siege after suffering a devastating attack that resulted in a staggering loss of $44.7 million across the Arbitrum and Ethereum blockchains.

Cyvers Alerts, a leading cybersecurity watchdog, uncovered the vulnerabilities exploited in the attack, raising urgent concerns about the security landscape within the DeFi ecosystem.

Hedgey Protocol hacked on Arbitrum and Ethereum chains

Cyvers Alerts revealed that the attack targeted Hedgey Protocol on both the Arbitrum and Ethereum chains, with $42.8 million and $1.9 million stolen, respectively.

According to Cyners Alerts, the attackers swiftly converted the stolen funds into DAI, complicating recovery efforts. Furthermore, additional transactions on the Arbitrum chain signalled potential vulnerabilities within the ecosystem, necessitating prompt action.

In response, Hedgey Protocol acknowledged the attack and they have said that they have launched a comprehensive investigation into the breach, working closely with security experts and auditors to understand the attack’s root cause.

As the investigation unfolds, Hedgey Protocol issued urgent advisories to its users, urging them to cancel active claims and revoke all approvals to mitigate the risk of further exploitation. They recommended an immediate review of approvals while the investigation progresses to ensure users’ security and prevent any potential loss of funds. Additionally, users were warned to remain vigilant against scammers attempting to capitalize on the situation, emphasizing the importance of cautious online behaviour.

Security Alert: We’re 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 are actively working with our auditors and team to understand the attack…

— Hedgey 🦔 (@hedgeyfinance) April 19, 2024

The Hedgey Protocol cyber attack underscores the interconnectedness of DeFi platforms and the imperative for robust security protocols in the evolving landscape of decentralized finance.

As stakeholders collaborate to address vulnerabilities and enhance security measures, the incident serves as a stark reminder of the ongoing challenges posed by cyber threats in the digital asset space.