SFUND Token Crashes 99% as North Korean Hackers Drain $1.2M from Seedify Bridge
SFUND, the official token of Seedify, plummeted by 99% after North Korean hackers extracted $1.2 million from the DAO launchpad.
At roughly 12:05 UTC on September 23, a state-affiliated group infamous for a number of Web3 exploits, linked to the DPRK, gained entry to a Seedify developer’s non-public keys.
With these credentials, they minted substantial quantities of SFUND tokens via a bridge contract that had beforehand undergone audit approval.
How North Korean Hackers Drained SFUND Liquidity Across 4 Major Chains
According to an official X post, Seedify confirmed that the North Korean hacker breach resulted from a personal key compromise, permitting attackers to change settings and mint unauthorized tokens on Avalanche.
Seedify revealed that the contract shouldn’t have permitted token minting with out corresponding bridged tokens, as they employed one of many world’s most trusted and skilled auditors to overview the good contracts and obtained assurance that the code represented safe, audit-approved contracts.
“We will probably be in contact with our auditors and safety consultants to overview the safety of all our different infrastructure,” the crew acknowledged.
Hackers bridged stolen tokens to Ethereum, Arbitrum, and Base, draining liquidity swimming pools earlier than transferring the utmost quantities to BNB Chain on the market.
“There isn’t any ongoing danger to liquidity on BNBChain anymore, and we’ve got paused all bridges. However, we advise in opposition to buying tokens on different chains till additional discover,” Seedify warned.
Core contracts, consumer wallets, and the underlying protocol stay unaffected.
The crew pledged clear restoration efforts and can present updates via official channels.
“We need to lengthen our deepest gratitude to our neighborhood and companions; your unbelievable help means the world to us throughout this time,” they added.
Seedify thanked blockchain investigator ZachXBT for connecting them with Zero Shadow, which helped determine the attackers and their strategies of assault.
“We Didn’t Come This Far to Come This Far”—Seedify Founder Vows Comeback
Seedify founder Levent Cem Aydan (popularly identified as Meta Alchemist) expressed his frustration with the assault.
In a recent X post, he shared that he created Seedify from private hardship, investing his last funds into DEX liquidity and airdrop charges.
“We didn’t increase VC cash, didn’t ask for a dime from anybody, and gifted greater than thirty thousand folks our preliminary tokens. DPRK/Lazarus determined to take every little thing we constructed over 4.5 years in a single hack.”
He confirmed that the contracts had been audited and believed to be safe, however North Korean hackers discovered a vulnerability and exploited it.
However, he remained resolute that the crew wouldn’t be defeated.
“We didn’t come this far to come back this far, and there are such a lot of folks’s hard-earned cash in right here.”
He added that they’d announce their plan to rise like a phoenix by tomorrow and thanked the neighborhood for its ongoing help.
Six-Figure Investor Watches SFUND Portfolio Sink 99% to $0.00005504
Alpha Collective founder Joseph Jaffe, who invested six figures in SFUND, publicly lamented that his investments are actually underwater as the Seedify token dropped 99% to an all-time low of $0.00005504.
However, following the Seedify crew’s pressing response efforts, the token has rebounded to $0.28 however stays down greater than 78% from the $2.34 mark it held only a month in the past.
The North Korean state-affiliated hacker group, generally identified as Lazarus, has executed a $1.5 billion heist, the most important linked to the crypto change Bybit this yr
Additionally, cybersecurity experts from Cyvers have linked the Lazarus Group to the July 19 hack on the Indian crypto change CoinDCX, which compromised $44 million.
Other targets embrace Ronin Bridge (March 2022, $625 million), Poly Network (August 2021, $600 million), and WazirX (July 2024, $235 million).
Since 2017, the group has stolen $3-6 billion in crypto property, allegedly funding North Korea’s nuclear and missile applications.
Binance founder Changpeng Zhao, additionally identified as “CZ,” recently revealed that these hackers now infiltrate crypto firms via faux job purposes, fraudulent interviews, and worker bribery.
CZ outlined three assault strategies: posing as developer/safety candidates, conducting malware-laden interviews, and bribing distributors for knowledge entry.
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