Cyvers reported that a cyber attack targeted ETH’s chain, resulting in hackers stealing approximately $1.9 million in cryptocurrency. Hedgey Finance acknowledged the incident and stated that an ongoing investigation was being conducted. Additionally, users were advised to revoke token claim permission until further notice.
The team of Hedgey Finance communicated their active collaboration with auditors and the internal team to comprehend the attack and prevent any ongoing attacks. They assured the public that further information would be shared as it becomes available. The protocol of Hedgey Finance permits the creation of an options market for digital assets, facilitating the buying and selling of calls and puts on cryptocurrencies issued on EVM-compatible chains.
Notably, there are no listing requirements, enabling immediate engagement in peer-to-peer ERC20 options trading. In this instance, hackers managed to siphon $42.8 million and transferred some of the proceeds to Bybit. Furthermore, the attackers exploited the same vulnerability in Hedgey Finance on both Ethereum and Abritrum.
This incident underlines the need for protocols like Hedgey Finance to dedicate additional resources and expertise to safeguarding defi platforms. It is important to note that statistics indicate a potential decline in hacks, and white hat experts have established a help desk to report hacks in real-time and distribute information regarding exploit strategies.