NAIROBI (Coinchapter.com) – Hedgey Finance, a decentralized finance platform, was hit by parallel exploits resulting in $44.7 million worth of lost funds. This attack comes amid a concerning rise in cryptocurrency hacks and exploits, with over $500 million stolen in the first quarter of 2024 alone.

Hackers Drain Hedgey Finance’s Coffers

According to on-chain security firm Cyvers, Hedgey Finance was hit by two devastating attacks on April 19th. The first breach targeted the Arbitrum network, draining $42.8 million in Arbitrum (ARB) tokens from the protocol. In fact, the attacker has already deposited a portion of the stolen funds on the Bybit cryptocurrency exchange.

Source: Cyvers

Simultaneously, Cyvers reported a separate $1.9 million exploit on the Ethereum blockchain, facilitated through Hedgey’s Token Claim Contract. Moreover, the hacker swapped the pilfered assets for DAI stablecoins before transferring them to an Ethereum address.

Soaring Crypto Hacks in Q1 2024

The broader cryptocurrency landscape witnessed a surge in hacks and exploits during the first quarter of 2024. According to a report by CertiK, a leading blockchain security firm, 223 hacks and exploits occurred, resulting in the theft of over $502 million worth of digital assets. This figure represents a 54% increase compared to the same period in 2023.

The report revealed that compromised private keys remained the top attack vector. They account for $239 million in losses across 26 incidents. However, despite the alarming statistics, there was a silver lining: over $77.9 million worth of stolen funds were eventually returned. This was primarily attributed to the Munchables security incident.

Hack3d, 2024 Q1 report. Source: Certik

January proved to be the most lucrative month for hackers, with 78 on-chain incidents siphoning off over $193 million worth of crypto.

Notably, private key compromises remain the primary attack vector. They account for $239 million in losses across 26 incidents in Q1 2024. Although these attacks represent only 11.7% of all security breaches, their financial impact is severe.

Moreover, while some stolen funds were eventually recovered, such as the $77.9 million from the Munchables security incident, the overall trend is alarming. In 2023, crypto hacks and scams drained a staggering $1.8 billion from the ecosystem. The North Korean Lazarus Group is reportedly responsible for 17% of the losses.

Snipped of Hedgey’s post on X

Notably, in the wake of the attacks, Hedgey Finance has urged users to cancel any active token claims on the platform. Indeed, the team is collaborating with auditors to investigate the exploits thoroughly and implement measures to prevent future breaches.

The post Hedgey Finance Hit by $44M Exploit as Crypto Hacks Surge appeared first on CoinChapter.

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Filed under: Bitcoin - @ April 20, 2024 12:13 am