Seedify’s Token Dropped Nearly 60% After Suspected North Korean Hack

SFUND’s token price fell by 59.8% today after a bridge hack drained undetermined funds. At least $1.2 million is currently sitting on BNBChain, but rumors have speculated about $8.8 million in total thefts.

Crypto sleuths claim that on-chain evidence connects some of the theft wallets to Contagious Interview, a North Korean hacker group. Another dangerous organization might be attempting bolder crimes.

SFUND Hack Leaves Unanswered Questions

Seedify Fund, a Web3 incubator and launchpad, has powered several ecosystem features with its SFUND token in the last few years.

Unfortunately, however, the platform suffered a major setback today, as one of its founders notified the community of a major SFUND hack:

Hello everybody,A drain bridge hack just happened on one of our $SFUND bridges. We are investigating the issue. We had audits on all these contracts, and been running the same bridge contracts for over 3 years.We already contacted Layerzero as well.We will be updating you…

— Meta Alchemist

Rumors quickly began circulating that hackers stole $8.8 million, but this seems like an exaggeration. The hack targeted an SFUND bridge, not the core token.

Sleuths currently suspect that the vulnerability involved cross-chain messaging or bridge logic, but there hasn’t been explicit confirmation.

Developers also warned the community not to use any SFUND bridges for the time being, as these may be vulnerable to future hacks. They also asked if CZ, the former Binance CEO, could help freeze around $1.2 million that was bridged to BNBChain.

Apparently, the perpetrators haven’t actually conducted any major token dumps yet. Nonetheless, the hack was still enough to cause major hits to SFUND’s token value:

SFUND Price Performance. Source: CoinGecko

A North Korean Connection?

To help answer some of these questions and recover SFUND stolen in the hack, Seedify offered a “huge bounty” to ZachXBT, the famous crypto sleuth. Zach has already contributed to the investigation, claiming that on-chain evidence connects the theft wallets to North Korean hackers.

Crypto thefts from the DPRK are a growing problem in the industry, and this is another disturbing incident. He specified that Contagious Interview was the specific organization implicated in the SFUND hack. That is to say, it wasn’t the Lazarus Group, the most famous North Korean outfit.

In other words, depending on how this hack was executed, another ring of North Korean crypto criminals might be rising in prominence.

If Contagious Interview, which has been active for multiple years, is expanding its ambitions, the entire community may need to be on alert.