Sfund Token Crashes 99% As North Korean Hackers Drain $1.2M From Seedify Bridge

What Happened

SFUND, the official token of Seedify, plummeted by 99% after North Korean hackers extracted $1.2 million from the DAO launchpad.

At approximately 12:05 UTC on September 23, a state-affiliated group notorious for multiple Web3 exploits, linked to the DPRK, gained access to a Seedify developer’s private keys.

How North Korean Hackers Drained SFUND Liquidity Across 4 Major Chains

According to an official X post, Seedify confirmed that the North Korean hacker breach resulted from a private key compromise, allowing attackers to modify settings and mint unauthorized tokens on Avalanche.

Hackers bridged stolen tokens to Ethereum, Arbitrum, and Base, draining liquidity pools before moving the maximum amounts to BNB Chain for sale.

Seedify thanked blockchain investigator ZachXBT for connecting them with Zero Shadow, which helped identify the attackers and their methods of attack.

In a recent X post, he shared that he created Seedify from personal hardship, investing his final funds into DEX liquidity and airdrop fees.

“We didn’t raise VC money, didn’t ask for a dime from anyone, and gifted more than thirty thousand people our initial tokens. DPRK/Lazarus decided to take everything we built over 4.5 years in one hack.”

He confirmed that the contracts were audited and believed to be secure, but North Korean hackers found a vulnerability and exploited it.

He added that they would announce their plan to rise like a phoenix by tomorrow and thanked the community for its ongoing support.

Six-Figure Investor Watches SFUND Portfolio Sink 99% to $0.00005504

Alpha Collective founder Joseph Jaffe, who invested six figures in SFUND, publicly lamented that his investments are now underwater as the Seedify token dropped 99% to an all-time low of $0.00005504.

Market Context

“There is no ongoing risk to liquidity on BNBChain anymore, and we have paused all bridges. However, we advise against purchasing tokens on other chains until further notice,” Seedify warned.

Why It Matters

With these credentials, they minted substantial amounts of SFUND tokens through a bridge contract that had previously undergone audit approval.

Seedify revealed that the contract should not have permitted token minting without corresponding bridged tokens, as they employed one of the world’s most trusted and experienced auditors to review the smart contracts and received assurance that the code represented secure, audit-approved contracts.

Details

“We will be in touch with our auditors and security experts to review the security of all our other infrastructure,” the team stated.

Core contracts, user wallets, and the underlying protocol remain unaffected.

The team pledged transparent recovery efforts and will provide updates through official channels.

“We want to extend our deepest gratitude to our community and partners; your incredible support means the world to us during this time,” they added.

“We Didn’t Come This Far to Come This Far”—Seedify Founder Vows Comeback

Seedify founder Levent Cem Aydan (popularly known as Meta Alchemist) expressed his frustration with the attack.

However, he remained resolute that the team would not be defeated.

“We didn’t come this far to come this far, and there are so many people’s hard-earned money in here.”

However, following the Seedify team’s urgent response efforts, the token has rebounded to $0.28 but remains down more than 78% from the $2.34 mark it held just a month ago.