Summary
TLDR: Hedgey Finance was hit by a cyberattack resulting in a $45 million loss. The hacker exploited a vulnerability in the protocol’s ‘createLockedCampaign’ function using flash-loaned funds across multiple blockchains. The attack highlights the need for enhanced security measures and real-time monitoring in the crypto industry.
Key Points
1. Hedgey Finance suffered a sophisticated cyberattack resulting in a $45 million financial loss. The breach occurred over a two-hour period, with the hacker exploiting the protocol’s ‘createLockedCampaign’ function using flash-loaned funds across multiple blockchains.
2. The attacker drained approximately $44.5 million from Hedgey Finance by executing transactions that bypassed the protocol’s digital defenses. Despite attempts by cybersecurity firm Cyvers to alert the protocol operators, there was initially no response.
3. The incident highlights the vulnerability of the ‘createLockedCampaign’ function and the increasing use of flash loans in DeFi exploitation. It also underscores the need for enhanced security measures, collaboration with cybersecurity experts, and real-time monitoring in the crypto industry to mitigate sophisticated cyber threats.