Token

Prisma Finance

Arbitrum

DeFi

Hedgey Finance, a token infrastructure platform, has suffered two parallel exploits amounting to a total of $44.7 million worth of lost funds.
Hedgey suffered an exploit worth over $42.8 million Arbitrum (ARB) tokens on the Arbitrum network, according to an April 19 X post by on-chain security firm <a href="https://twitter.com/CyversAlerts/status/1781283959403372911" target="_blank" rel="noopener noreferrer nofollow">Cyvers</a>. The attacker has already deposited part of the funds to the Bybit cryptocurrency exchange.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-04/f58e9c16-7e1f-4672-a007-4fe419ffed74.jpeg">
 <figcaption style="text-align: center;">Smart contract vulnerability. Source: <a href="https://twitter.com/CyversAlerts/status/1781283959403372911" target="_blank" rel="noopener noreferrer nofollow">Cyvers</a>
 </figcaption>
</figure>
Earlier, Hedgey protocol was hacked for a total of $1.9 million worth of crypto on the Ethereum network, according to an X alert by <a href="https://twitter.com/CyversAlerts/status/1781271050073841735" target="_blank" rel="noopener noreferrer nofollow">Cyvers</a>.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-04/eb4c6d89-cfa5-4169-b3b8-e69fb7b362e4.png">
 <figcaption style="text-align: center;">Hedgey exploit alert. Source: <a href="https://twitter.com/CyversAlerts/status/1781271050073841735" target="_blank" rel="noopener noreferrer nofollow">Cyvers</a>
 </figcaption>
</figure>
Hedgey protocol confirmed the exploit, adding that it is actively working with auditors to understand the vulnerability behind the potentially ongoing attack. It said in an April 19 X <a href="https://twitter.com/hedgeyfinance/status/1781257581488418862" target="_blank" rel="noopener noreferrer nofollow">post</a>:
<blockquote data-ct-non-breakable="true">
 “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…”
</blockquote>
Shortly after Hedgey confirmed the exploit, scam accounts impersonating the protocol have started posting potentially malicious links under the thread, urging people to ask for a refund or revoke their smart contract approvals, pointing to suspicious links without connection to Hedgey protocol.
The exploit occurred hours before the much-anticipated <a href="https://cointelegraph.com/news/bitcoin-halving-2024" rel="noopener noreferrer nofollow">Bitcoin halving</a>, set to reduce block issuance rewards in half.
Related: <a href="https://cointelegraph.com/news/new-bitcoin-whales-etf-unrealized-profit-btc-bottom" rel="noopener noreferrer nofollow">New Bitcoin whales, ETFs are up only 1.6% in unrealized profit — Is the BTC bottom in?</a>
<h2 id="over-500-million-stolen-in-crypto-hacks-in-q1-2024">Over $500 million stolen in crypto hacks in Q1 2024</h2>
The first quarter of 2024 saw 223 hacks and exploits that amounted to a total of over $502 million worth of stolen digital assets, according to the Hack3d <a href="https://www.certik.com/resources/blog/hack3d-the-web3-security-quarterly-report-q1-2024" target="_blank" rel="noopener noreferrer nofollow">report</a> by on-chain security firm CertiK.
This represents a 54% increase compared to the first quarter of 2023, which saw a total of $326 million worth of funds stolen. January was the most lucrative month for hackers, who stole over $193 million worth of crypto in 78 on-chain incidents.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-04/ef0623bd-cd9b-4305-b9c1-cb75a6186951.png">
 <figcaption style="text-align: center;">Hacks by type. Source: <a href="https://www.certik.com/resources/blog/hack3d-the-web3-security-quarterly-report-q1-2024" target="_blank" rel="noopener noreferrer nofollow">CertiK</a>
 </figcaption>
</figure>
As in previous quarters, compromised private keys remained the top attack vector, with over $239 million lost in 26 such incidents. Compromised private key exploits only account for 11.7% of all security incidents, according to CertiK.
On the bright side, over $77.9 million worth of stolen funds were ultimately returned in the first quarter, most attributed to the Munchables security incident.
A total of <a href="https://cointelegraph.com/news/1-8-billion-lost-web3-hackers-fraudsters-2023-immunefi" rel="noopener noreferrer nofollow">$1.8 billion was lost to crypto hacks</a> and scammers in 2023, of which 17% can be attributed to the North Korean Lazarus Group, according to a Dec. 28 report by Immunefi.
Related: <a href="https://cointelegraph.com/news/prisma-finance-exploited-10-million" rel="noopener noreferrer nofollow">Prisma Finance exploited in $10 million breach</a>

DeFi platform Hedgey Finance hit by $44 million exploit

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