The Seedify ($SFUND) community was rattled this week after attackers exploited a bridge vulnerability, draining over $1.2 million. The cross-chain hack, affecting multiple networks, has drawn attention from Binance co-founder Changpeng “CZ” Zhao, who confirmed the breach and indicated possible links to North Korea’s DPRK.
How the Hack Happened
On September 23, blockchain researcher Meta Alchemist reported that Seedify’s bridge and cross-chain contract had been compromised. Hackers minted new $SFUND tokens across networks including BNB Chain, Polygon, Arbitrum, and Base, quickly swapping them for assets like BNB and ETH to drain liquidity.
Early reports show attackers created billions of counterfeit tokens on Base, exchanging them for 141 ETH. On BNB Chain, roughly 8.7 million $SFUND were converted to about $1.2 million in BNB. Overall, the combined loss across networks is estimated at $1.7 million. On-chain analyst Specter noted that the funds were dispersed across multiple addresses, complicating efforts to trace the theft.
CZ Steps In, Some Funds Frozen
Amid community concerns, Meta Alchemist highlighted that over 64,000 BNB Chain users were impacted, urging CZ to act before the stolen funds left the blockchain. CZ responded on X, confirming consultation with security experts and stating that approximately $200,000 of stolen assets had been frozen at exchange HTX. The remaining funds, though still on-chain, are reportedly flagged by major exchanges. CZ commented, “Looks like North Korea DPRK,” noting that hacker addresses are likely blacklisted.
DPRK Links Surface
This is not the first time DPRK-linked groups have been associated with bridge hacks. Lazarus Group, a North Korea-backed entity, was behind the $620 million Ronin bridge breach in 2022. Blockchain investigator ZachXBT noted that the addresses used in the SFUND hack overlap with wallets involved in previous DPRK-affiliated exploits like Serenity Shield. On-chain evidence further suggests that funds have been routed through addresses previously tied to North Korean cybercrime activity, reinforcing suspicions of state-backed involvement.
Market and Community Impact
$SFUND’s price dropped nearly 60% following the breach, hitting $0.05 before stabilizing near $0.17. Beyond financial losses, the hack has shaken the community, with members expressing frustration and concern for ongoing project security. Former Seedify team members described feeling “heartbroken” for investors and developers.
Exchanges have begun blacklisting the hacker wallets, limiting options for fund liquidation. BNB Chain has confirmed its awareness and initiated investigations, though most of the stolen assets remain inaccessible.
The Broader Problem of Bridge Exploits
The SFUND incident underscores persistent vulnerabilities in cross-chain bridges, which continue to attract sophisticated attackers due to their complexity and high liquidity. For Seedify, rebuilding trust is now a priority. While CZ and major exchanges have frozen part of the stolen funds, the wider lesson for the crypto industry is clear: robust cross-chain security remains an urgent challenge.
