CZ Confirms $200K Frozen After $1.7M SFUND Exploit

• Hackers exploited Meta Alchemist’s bridge, stealing $1.2M in $SFUND.
• CZ confirmed $200K frozen at HTX, with most funds still on-chain.
• DPRK-linked hackers suspected; addresses blacklisted by major exchanges.

Binance founder Changpeng Zhao (CZ) confirmed that $200,000 has been frozen at HTX following an SFUND bridge exploit. The hack targeted Meta Alchemist’s bridge and OFT contract, allowing attackers to mint new tokens and transfer them across multiple chains.

The majority of the stolen funds were sold on BNB Chain, where SFUND holds its largest user base. According to Meta Alchemist, the attackers currently control more than $1.2 million on BNB Chain, affecting approximately 64,000 holders.

CZ Provides Update on Frozen Funds

In response, CZ stated that he had spoken with security experts across the industry following the breach. He confirmed that $200,000 connected to the exploit was frozen at HTX. However, most of the stolen assets remain on-chain.

“Looks like North Korea DPRK,” CZ wrote on X, adding that major centralized exchanges had blacklisted the wallet addresses linked to the exploit. CZ’s comments suggest possible ties to North Korea, which has been implicated in several high-profile cryptocurrency thefts.

Reports from the United Nations and blockchain analytics firms have repeatedly linked DPRK-affiliated groups to hacks that fund the country’s weapons development programs.

Related: Here Are the Top Five Crypto Firms Securing Over $30M in Funding in July

About Seedify’s Hack 

Attackers exploited Seedify’s SFUND bridge and cross-chain contract this week, draining an estimated $1.7 million across multiple networks, including BNB Chain, Polygon, Arbitrum, and Base. 

Meta Alchemist reported that hackers minted billions of fake tokens and quickly swapped them for assets such as BNB and ETH, with $1.2 million in losses recorded on BNB Chain alone. 

BNB Chain publicly acknowledged the exploit and said its team was actively monitoring the situation. “[We] confirm the team is aware of it and looking into it,” the official account posted.

Meta Alchemist expressed gratitude for the support and said BNB Chain had been assisting behind the scenes since the incident occurred. The team also reported contacting several blockchains, exchanges, and security partners to limit the hacker’s ability to move stolen funds.

SFUND Plummeted by 60%

The SFUND token plummeted nearly 60% after the bridge exploit, briefly dropping to $0.05 before recovering to nearly $0.17. It now trades at $0.245, reducing the daily loss to 42%. This takes its monthly and year-to-date losses to 50% and 80%, respectively. 

The crash left many holders facing steep financial and emotional losses, with community members voicing frustration and grief on social media. 

A former Seedify contributor described feeling “heartbroken” for current developers and investors. Others called on blockchain investigators such as ZachXBT to help trace the attackers.

Related: Seedify.fund Price Prediction 2023-2030: Will SFUND Price Hit $2.5 Soon?