Hedgey Finance, a platform central to token infrastructure, recently underwent a severe blow, losing around $44.5 million in digital assets over two hours. This substantial theft occurred across Ethereum's layer-2 network Arbitrum and Binance Smart Chain.

Reported by blockchain security firm Cyvers to CryptoSlate on April 19, the breach involved a malicious actor exploiting Hedgey's "createLockedCampaign" function, leveraging flash-loaned funds for the theft.

Initially, the attacker made off with $1.9 million, swiftly converting it to DAI stablecoin and transferring it to an external address. Subsequently, they targeted Arbitrum, siphoning off $42.8 million after securing funds on the ETH Chain via FixedFloat.

Despite Cyvers' detection, attempts to reach Hedgey Finance's team proved fruitless. Cyvers stressed the need for transparent collaboration between decentralized applications (dApps) and security firms to minimize risks and rebuild trust.

In the aftermath, the suspicious address implicated emerged as the primary holder of the BONUS token, native to BonusBlock. This event triggered a 10% drop in the digital asset's value to $0.5084, per CoinMarketCap data.

The attacker wasted no time, already transferring over 200,000 BONUS tokens worth $110,000 to the Bybit exchange.

Responding to the breach, Hedgey Finance launched an investigation and advised users with active claims to cancel them via the "End Token Claim" feature on the platform's website. The company pledged ongoing collaboration with auditors and its team to comprehend and address the attack, vowing to provide updates promptly.

Meanwhile, fraudulent accounts masquerading as the Hedgey protocol surfaced on social media platform X, urging affected platform users to seek refunds or revoke smart contract approvals through dubious phishing links.