What Happened?
The SFUND token of Seedify, a decentralized autonomous organization (DAO), suffered a 99% drop after North Korean hackers stole $1.2 million from the launchpad. The attackers obtained access to a developer’s private keys at approximately 12:05 UTC on September 23 and used these credentials to mint vast amounts of SFUND tokens via an audited bridge contract.
Who Does This Affect?
This event directly impacts investors in the SFUND token who saw their investments in the token crash dramatically. For instance, Joseph Jaffe, founder of Alpha Collective, who had invested six figures into SFUND, publicly expressed his dismay over his now ‘underwater’ investments as the value of the token hit an all-time low.
Why Does This Matter?
The security breach and consequential market impact raise concerns about the security measures in place to protect cryptocurrencies from such cyber attacks. It also underscores the potential risks investors face while investing in digital currencies. Additionally, incidents like this could lead to increased scrutiny and regulation in the cryptocurrency market.