Catastrophic Drop of Seedify’s SFUND Cryptocurrency
In a dramatic turn of events, Seedify’s SFUND cryptocurrency experienced a catastrophic drop, plummeting by 99.99% from its value of $0.43 to almost worthless in a matter of minutes. This unprecedented decline on September 23 occurred after the company confirmed a major security breach involving its cross-chain bridge. At the time of writing, SFUND managed to stabilize slightly above $0.21, according to data from CoinMarketCap.
Details of the Security Breach
The crisis began when Levent Cem Aydan, Seedify’s founder, disclosed that unauthorized parties had exploited the project’s bridge, enabling them to mint and sell large quantities of SFUND across different blockchain networks. In an urgent message shared on social media platform X, Aydan reached out to Changpeng Zhao, the CEO of Binance, seeking assistance after identifying over $1.2 million worth of assets stolen from 64,000 affected holders on BNB Chain.
Aydan’s message detailed how the hackers had transferred the minted tokens onto various chains, primarily BNB, and had liquidated a significant portion of these tokens.
Following this revelation, Seedify’s official account provided additional updates approximately three hours later. They implicated a state-affiliated hacking group from North Korea in the breach, stating that the attackers managed to gain access to a developer’s private keys.
Response and Recovery Efforts
According to the team’s statement, the breach was detected around 12:05 UTC, when the hackers used the compromised keys to access the bridge contract on the Avalanche network, leading to unauthorized modifications and the minting of new SFUND tokens. The unsettling nature of this incident was exacerbated by the fact that the contract had been previously audited by a reputable firm.
In response to this breach, the Seedify team mobilized quickly to contain the situation. They coordinated with centralized exchanges to suspend trading, placed bans on the hacker’s addresses across multiple networks, and revoked the permissions that had been compromised. Their update reassured users that there was no further risk to liquidity on BNB Chain, announcing that all cross-chain bridges have been temporarily shut down.
Commitment to the Future
Despite the severity of the situation, Seedify’s team expressed their determination to move forward. They stated,
“Since 2021, Seedify has been a home for builders and everyone dedicated to creating value in the Web3 ecosystem, through both bull and bear markets. This unfortunate event won’t stop us; it only ignites our commitment to build better and stronger from here.”
Additionally, Aydan offered a bounty to blockchain investigator ZachXBT, urging him to help track down the perpetrators and recover the stolen funds. He expressed the urgency of the situation, stating,
“If you could find us the hackers and assist in resolving this issue, we would love to give you a substantial bounty for your efforts.”
