Hedgey Hack

TOTAL LOST $44.7M
High #140 All-Time Claim Contract Flashloan Exploit / Flash Loan Attack arbitrum ethereum

Summarize with AI

ChatGPT Perplexity Claude Grok
Affected Chain arbitrum 2 chains affected
Recovered - No recovery reported
All-Time Rank #140 By amount stolen
Auditors 1 Prior security audit

Incident Overview

Quick Summary

The Hedgey Finance-related contract was drained of approximately 2 million USD.

Details of the Exploit

The exploiter utilized the Balancer Vault flash loan exploit to target the victim contract, abusing the createLockedCampaign function. This enabled them to withdraw a substantial amount of USDC (1,303,910) and NOBL (680,000) tokens. Furthermore, it appears that the vulnerability in the victim contract was exploited by other malicious actors unrelated to the main exploiter.

After that, all tokens were swapped to DAI and sent to another EOA.

Block Data Reference

Exploiter:

https://etherscan.io/address/0xded2b1a4…81dda2

Flashloan tx:

https://etherscan.io/tx/0xa17fdb80…5aa517

Exploiter contract:

https://etherscan.io/address/0xc793113f…1bf2b3

USDC drain:

https://etherscan.io/tx/0x2606d459…595739

NOBL drain:

https://etherscan.io/tx/0x7cd6fc13…207bd3

Finally, funds held by:

https://etherscan.io/address/0xd84f48b7…5ada46

This is classified as a Flash Loans Attacks . Compare similar hacks →

Incident Report

Protocol / Project Hedgey
Date of Incident
Affected Chain(s) arbitrum ethereum
Attack Technique Claim Contract Flashloan Exploit / Flash Loan Attack
Classification Ecosystem / Other
Primary Source View Post-Mortem

Protocol Information

Protocol Type Payments
Smart Contract Language Solidity
Official Website hedgey.finance/
Protocol Twitter/X @hedgeyfinance
Team Anonymous
Source Code Unverified

Market Context at Time of Hack

Token Categories
Asset Management
Protocol Links
Reddit Telegram

What the Attacker Needed to Succeed

Understanding the prerequisites for this type of attack helps auditors identify protocols that are most at risk and helps developers build better defenses.

Technical Knowledge Deep understanding of claim contract flashloan exploit / flash loan attack and Solidity and EVM internals
Capital Required Flash loan capital (borrowed atomically, zero upfront cost)
On-Chain Access Ability to interact with arbitrum, ethereum smart contracts and deploy a custom exploit contract
Protocol Analysis Identification of the exploitable vulnerability in Hedgey's contract logic - root cause: ecosystem / other
Execution Speed Precise transaction ordering and timing to exploit the vulnerability within a single atomic block
Obfuscation Plan A strategy to launder and move stolen funds - typically through mixers, cross-chain bridges, or decentralized DEX swaps to resist tracing

What Auditors Should Check

Could this have been caught in audit? Yes — skilled auditors routinely flag Claim Contract Flashloan Exploit / Flash Loan Attack vulnerabilities in code review
Audited by Audit Report 1 — still lost $44.7M. Prior audits don't guarantee safety, especially after post-audit code changes.

If you're auditing a protocol with similar architecture to Hedgey, these are the critical security checks that could have prevented this incident (April 2024).

  • Verify all logic paths related to Claim Contract Flashloan Exploit / Flash Loan Attack are guarded by proper access controls and input validation - see the Flash Loans Attacks attack class for patterns
  • Review privileged functions (owner, admin, governance) for potential abuse vectors - centralization risks should be documented and bounded with timelocks or multi-sigs

Master these auditing techniques with hands-on labs and real exploit scenarios in the Smart Contract Hacking course.

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Security Audit History

Related Attack Classes

The technique used in this hack maps to these vulnerability classes in our security curriculum:

See all Flash Loans Attacks examples →

Flash Loans Attacks

Sources & References

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