Hedgy Finance responds to security breach as crypto attacks could resume following Bitcoin halving hype


  • Hedgy Finance has begun attempts to recover stolen funds after a $1.9 million security breach on the Hedgy Token Claim Contract.
  • Phishing attacks increase as Ethereum name service address suffers a major hit.
  • Investors should exercise caution as Bitcoin halving hype could lead to more attacks.

DeFi token vesting platform Hedgy Finance suffered a security breach on Friday that resulted in a $1.9 million loss. However, Hedgy announced that it's currently working out plans to recover the stolen funds. This comes after a series of phishing attacks across various blockchain platforms.

Also read: Mango Market attacker convicted of fraud and market manipulation

Hedgy plans to recover stolen funds after $1.9 million attack

Hedgy Finance users were the latest victims of rising crypto scams after an attacker exploited the platform's Hedgy Token Claim Contract. According to Cyvers Alerts, the attacker stole $1.9 million worth of assets, swapped them for DAI stablecoin and transferred them to an externally-owned account (EOA).

Hedgy Finance confirmed the attack in an X post on Friday, stating that "users of (...) token vesting, investor lockup, treasury lock or timelock contracts were not impacted." They stated they've sent the attacker a message on Etherscan as they begin attempts to recover the lost funds.

"In the coming days we will be focused on working with our users who were impacted and recovering lost funds. We will continue working with impacted projects to resolve issues created by this exploit," said Hedgy Finance.

Read more: Prisma Finance hacker could be uncovered after investigations by on-chain analyst

Phishing scams are increasing

Hedgy's attack follows an increase in phishing scams in recent weeks. Cryptocurrency phishing scams involve malicious entities sending links to fake websites that often impersonate legitimate businesses to get access to a user's wallet information.

On Thursday, Cyvers alert reported that scammers stole approximately $3 million through phishing transactions across several blockchains.

Cyvers admonished users to revoke approvals for the several phishing EOAs.

The phishing attacks seem not to be over, as an Ethereum name service address mummyhap.eth suffered a similar fate, losing $759,200 worth of digital assets, according to PeckShieldAlert.

Also read: Crypto traders lost nearly $300 million in 2023 due to rising phishing scams

The stolen tokens include 86.59 wstETH, 31.21 stETH, 49.88 pufETH, and 56.96 aEthwstETH. The attack was attributed to an entity using the alias Fake_Phishing187019.

Increased phishing attacks aren't new in seasons like this as Bitcoin experiences its fourth halving. Scammers thrive on the hype to lure users into submitting their wallet details.

Investors should stay vigilant and watch out for other crypto scams that attackers often leverage to steal funds.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Cardano Price Forecast: ADA's recent breakout could trigger 15% rally

Cardano Price Forecast: ADA's recent breakout could trigger 15% rally

Cardano price rally on Monday suggests that a larger bullish move might be in the works. On-chain data shows a comeback in investor interest and entry of institutional investors.

More Cardano News

Ondo price poised to break ATH of $1.04

Ondo price poised to break ATH of $1.04

Ondo price is slowly testing its major support level at $0.63-$0.61. Aggressive buyers can consider accumulating around the immediate support zone, which extends from $0.83 to $0.80.

More Ondo News

Shiba Inu price flashes buy signal, 25% rally likely Premium

Shiba Inu price flashes buy signal, 25% rally likely

Shiba Inu price has flipped bullish to the tune of the crypto market and breached key hurdles, showing signs of a potential rally. Investors looking to accumulate SHIB have a good opportunity to do so before the meme coin shoots up.

More Shiba Inu News

New York Attorney General reaches $2 billion settlement with Genesis after claims of fraud

New York Attorney General reaches $2 billion settlement with Genesis after claims of fraud

New York Attorney General Letitia James says her office has secured a $2 billion settlement from Genesis. AG Letitia James sued the crypto company in October on account of lying and defrauding investors of over $1 billion.

More Cryptocurrencies News

Bitcoin: Is BTC out of the woods? Premium

Bitcoin: Is BTC out of the woods?

Bitcoin price shows signs of continuing its uptrend, providing a buying opportunity between $64,580 to $63,095. On-chain metrics forecast a bullish outlook for BTC ahead. If BTC clears $70,000, the chances of resuming the uptrend would skyrocket.

Read full analysis

BTC

ETH

XRP