In one of the networks of ether (ETH) many millions have been lost. It is the Arbitrum (ARB) network where almost $43 million worth of ARB tokens were stolen. These tokens belonged to Hedgey Finance, a token distribution company.
The platform has previously been affected by similar exploitation. The damage at that time amounted to 1.9 million US dollars. This brings the total amount of tokens lost to almost $45 million.
Crypto platform Hedgey Finance investigates hack
Blockchain security company Cyvers brought the news about X outward. The attacker knew of a weak point in one smart contract and was therefore able to remove cryptos from the platform undisturbed. On-chain data shows that the perpetrator has already converted some of the funds into the stablecoin DAI. This was sent to crypto exchange ByBit.
Hedgey Finance is a decentralized financial institution (DeFi) protocol that provides services for managing token provisioning. This is the process of gradually releasing or issuing digital tokens to specific users or groups over a set period of time.
After discovering the exploit, Hedgey Finance confirmed the attack. The platform has announced that it will investigate the vulnerability in collaboration with auditors. It is still unclear whether affected investors will get their money back as a result of the hack.
A lot was stolen, but a lot was also recovered
The operation at Hedgey Finance is another good example of how the relatively young crypto industry is still facing problems. However, there is hope as the fight against cybercrime proves increasingly successful.
March 2024 marked namely an important month against crypto hackers. Despite recording 30 individual hacks with a total loss of $187 million, significant progress has been made in recovering stolen cryptocurrencies.
More than $90 million in stolen funds were successfully recovered this month, accounting for more than half of the total loss. The data for the first quarter of 2024 also shows a 25% decrease in hack losses compared to the previous year, with DeFi protocols being the main target.
A notable example of these recovery efforts is the Munchables hack. The non-fungible token (NFT) game developed on the Blast network suffered a loss of $62 million due to a hack by one of its own developers. Exceptionally, the full amount was returned by the perpetrator voluntarily and without demanding a ransom.
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