Hedgey Finance, a token infrastructure platform, experienced a significant loss of approximately $44.5 million in digital assets within a span of two hours across Ethereum's layer-2 network Arbitrum and Binance Smart Chain.

According to a statement shared with CryptoSlate on April 19 by blockchain security firm Cyvers, a malicious attacker exploited Hedgey's "createLockedCampaign" function, utilizing flash-loaned funds to carry out the theft.

Initially, the attacker stole $1.9 million, swiftly converting it to the DAI stablecoin and transferring it to an external address. Subsequently, the attacker targeted the Arbitrum chain, pilfering $42.8 million after obtaining funding on the ETH Chain via FixedFloat.

Despite Cyvers' detection, attempts to contact Hedgey Finance's team were unsuccessful. Cyvers emphasized the importance of more transparent collaboration between decentralized applications (dApps) and security firms to mitigate risks and restore trust.

Following the attack, the suspicious address involved emerged as the primary holder of the BONUS token, the native digital asset of BonusBlock. The incident led to a 10% decline in the digital asset's value to $0.5084, according to CoinMarketCap data.

The attacker has already begun moving some stolen assets, transferring over 200,000 BONUS tokens valued at $110,000 to the Bybit exchange.

In response to the exploit, Hedgey Finance initiated an investigation into the attack and advised users with active claims to cancel them using the "End Token Claim" feature on the platform's website. The firm assured ongoing collaboration with auditors and the team to understand and mitigate the attack, promising to share updates as they become available.

Meanwhile, several fraudulent accounts posing as the Hedgey protocol have emerged on the social media platform X, urging hacked platform users to request refunds or revoke their smart contract approvals through suspicious phishing links.