SFUND Token Tumbles: North Korean Hackers Exploit Seedify Bridge in $1.2M Crypto Heist

North Korean hackers struck again, targeting Seedify's cross-chain bridge, causing a 99% crash in SFUND token value. A deep dive into the attack, attribution, and industry response.

In a dramatic turn of events, the crypto world was rocked by another North Korean-linked cyberattack. This time, Seedify's cross-chain bridge was the target, resulting in a staggering $1.2 million loss and a near-total collapse of the SFUND token. Let's unpack what happened, who's responsible, and what it means for the future of DeFi security.

The Anatomy of the Attack

On September 23, 2025, hackers linked to the North Korean group known as "Contagious Interview" infiltrated Seedify's system by compromising a developer's private keys. This allowed them to exploit a vulnerability in the platform's cross-chain bridge contract on Avalanche, minting massive amounts of unauthorized SFUND tokens. These tokens were then swiftly moved across multiple blockchain networks, including Ethereum, Arbitrum, and Base, before being largely converted on BNB Chain.

Seedify founder Meta Alchemist lamented the attack, stating the hackers had undone 4.5 years of work. The fact that this breach occurred despite prior security audits from trusted firms raises serious concerns about the effectiveness of current DeFi security measures.

SFUND's Price Plunge

The SFUND token experienced a historic price crash, plummeting from $0.43 to nearly zero in minutes – a 99.99% drop. Trading volume surged as investors scrambled to exit their positions. While the token has since stabilized somewhat, the damage to investor confidence is significant.

North Korea's Growing Crypto Crime Spree

Blockchain investigator ZachXBT quickly attributed the attack to North Korean state-sponsored hackers, specifically the "Contagious Interview" group. This group has been linked to numerous previous incidents, highlighting a disturbing trend of increasingly sophisticated attacks on the crypto sector. North Korean hackers have been especially active in 2024 and 2025. With known DPRK-related losses already reaching $1.3 billion in 2024. The ByBit hack's $1.5 billion alone has already made 2025 "by far their most successful year to date".

Their methods are evolving, too. They're now using tactics like fake job applications, fraudulent interviews, and employee bribery to infiltrate crypto companies, making traditional security measures less effective.

Industry Response and Recovery Efforts

Seedify has taken steps to mitigate the damage, coordinating with exchanges to halt SFUND trading and blacklisting the attackers' wallets. Binance founder Changpeng Zhao confirmed that security experts helped freeze $200,000 at HTX exchange. Meta Alchemist even offered a bounty to ZachXBT to help track down the stolen funds.

Implications for DeFi Security

This attack underscores the vulnerabilities inherent in cross-chain bridge infrastructure. Despite security audits, flaws existed that allowed unauthorized token minting. Experts recommend implementing multi-signature controls, closer on-chain monitoring, and robust incident response plans. The competitive pressure to launch quickly often trumps thorough security testing, creating opportunities for malicious actors.

My Two Sats

The Seedify hack is a wake-up call for the DeFi community. While the industry is quick to innovate, security often lags behind. It's crucial to prioritize security audits and implement robust measures to protect against increasingly sophisticated attacks, especially from state-sponsored actors like North Korea. The focus on direct exchange hacks has shifted to exploiting DeFi protocols and cross-chain infrastructure where security practices may be less mature. Is this a problem the whole ecosystem need to face?

The Road Ahead

Seedify is working to rebuild trust with its community, but the token's massive price decline will undoubtedly have lasting effects. It serves as a stark reminder of the risks involved in the crypto world. Hopefully, the community will come back even stronger than before!

So, what's the takeaway? Keep your keys safe, DYOR (do your own research), and maybe invest in a really good hardware wallet. After all, in the wild west of crypto, a little paranoia can go a long way. Stay safe out there, folks!