According to cybersecurity firm Cyvers, the hackers successfully breached the Hedgey Token Claim smart contract and managed to withdraw $1.9 million worth of assets, converting them into DAI stablecoins.
The protocol, which operates on the Ethereum main network utilizing the Arbitrum solution, is now facing potential losses of almost $43 million across smart contracts based on Arbitrum, as per available information.
Hedgey Finance representatives have acknowledged the security breach and advised users to cancel any active token requests within the Hedgey Token Claim smart contract. The development team is currently collaborating with auditors in an effort to recover the funds.
In a tweet, cryptocurrency journalist Colin Wu disclosed that Hedgey Finance’s losses have exceeded $44 million in total.
This incident follows Cyvers’ prior warning about a hack on the FixFloat cryptocurrency exchange earlier this month, which led to a loss of $2.8 million in assets.