DeFi Protocol Hedgey Finance Suffers $44M Hack

The platform suffered two parallel attacks on Arbitrum and Ethereum.

By: Pedro Solimano Loading...

image depicting a DeFi hack

It looks like Hedgey Finance didn’t hedge itself.

DeFi platform Hedgey Finance suffered two attacks early Friday, resulting in $44 million of losses. One attack took place on Arbitrum, where $42.8 million worth of ARB tokens were drained, while the second occurred on Ethereum and saw $1.9 million stolen.

Users and the Hedgey Finance team were alerted to the first attack by cybersecurity firm Cyvers Alerts. According to the company, attackers initially stole $1.9 million in ETH, swapping it later to DAI.

Cyvers Alerts also posted that the attacker was funded by Change Now, a non-custodial crypto exchange.

Less than two hours later, the Hedgey Finance team acknowledged the attack and requested users to cancel any active claims on their platform.

“Security Alert: We're investigating an attack on the Hedgey Token Claim Contract,” reads a post by the Hedgey Finance social media team. “If you have created active claims, please cancel them using the "End Token Claim" button on the website.”

A number of protocols were affected, including the Decentralized Science (DeSci) project Noble Blocks, which had a vesting contract with Hedgey.

Hedgey Finance helps teams create and manage on-chain token vesting, lockups, and claim portals. According to its X profile, it works with Celo, Gitcoin, Arbitrum, and other crypto projects.

According to some blockchain sleuths, the Ethereum-based hack happened due to one line of code.

The team is yet to publish an update on the situation.