Seedify’s SFUND Token Plunges 60% After Suspected Hack

Seedify Fund, a popular Web3 incubator and launchpad, is reeling after its SFUND token crashed nearly 60% in a single day. The plunge followed reports of a suspected bridge hack that drained millions in funds, with early evidence pointing to North Korean-linked hackers.

What Happened to SFUND?

Seedify confirmed the breach on September 16, urging its community to avoid using any SFUND token bridges until further notice. Initial on-chain data suggests around $1.2 million has already been bridged to BNB Chain, though rumors have inflated the total theft to as much as $8.8 million—a figure yet to be verified.

The vulnerability appears tied to cross-chain messaging or bridge logic, but developers haven’t released a full technical breakdown. They’ve also appealed to Binance’s former CEO, Changpeng “CZ” Zhao, to help freeze stolen assets sitting on BNB Chain.

Despite the breach, attackers haven’t carried out major token dumps yet. Still, panic selling hit the market hard: SFUND’s price collapsed by nearly 60%, according to CoinGecko.

North Korean Hacker Connection

To track the stolen funds, Seedify offered a bounty to well-known blockchain investigator ZachXBT, who has since joined the hunt. Zach reported that on-chain evidence ties the theft wallets to “Contagious Interview,” a lesser-known but long-active North Korean hacking outfit.

This is notable because most North Korean crypto thefts have been linked to the infamous Lazarus Group. If accurate, it suggests other DPRK-linked groups may be stepping up their cybercrime activity.

“Depending on how this hack was executed, the community may need to prepare for another North Korean ring expanding its ambitions,” Zach warned.

Why It Matters

North Korean hackers have become some of the most prolific threats in the crypto industry, stealing an estimated $1.7 billion worth of digital assets in 2022 alone, according to the United Nations. The emergence of another organized DPRK-linked group could escalate risks for DeFi protocols and token bridges already struggling with vulnerabilities.

For Seedify, the breach is a major setback. The platform has gained traction by incubating blockchain projects and powering its ecosystem through SFUND, but investor confidence has now been shaken.

What’s Next?

• Seedify developers are working to identify the vulnerability and secure their infrastructure.
• Exchanges and community watchdogs may try to freeze stolen funds before they’re laundered.
• Investors are watching whether SFUND can recover value once technical fixes and compensation plans, if any, are announced.

For now, the advice is clear: avoid SFUND bridges until further notice and stay alert for official updates from Seedify.