On September 23, 2025, the crypto community witnessed another major cross-chain incident, this time involving Seedify Fund’s native token $SFUND. Known for its role as a launchpad and incubator for gaming, AI, and Web3 projects, Seedify has long been considered a trusted player in decentralized finance. However, the recent exploit of its cross-chain bridge has raised serious questions about key management and security in the DeFi ecosystem.
This article explains what $SFUND is, how the exploit happened, the market fallout, and what recovery steps are underway. For investors and builders alike, the incident highlights persistent risks in the multi-chain environment and why securing bridges remains one of DeFi’s biggest challenges.
What Is Seedify Fund and $SFUND?
Seedify Fund launched in 2021 as a blockchain incubator and launchpad. Its mission is to help early-stage projects in gaming, AI, and Web3 ecosystems by providing funding, exposure, and token launch support.
Key details about $SFUND:
Native token of Seedify Fund.
Operates across BNB Chain, Ethereum, Arbitrum, Base, and Avalanche.
Tiered staking system gives holders access to token launches and investment opportunities.
As of September 24, 2025: ~$10–15M market cap, ~$20M fully diluted valuation (post-recovery).
Seedify has gained credibility through successful token launches and investor backing. Before the exploit, \$SFUND was trading steadily between $0.40 and $0.65, with roughly 64,000 holders.
How the $SFUND Exploit Unfolded
The exploit began at 12:05 UTC on September 23, 2025. Unlike many previous DeFi hacks caused by coding flaws, this incident stemmed from compromised private keys.
Attack Method:
A DPRK (North Korea)-affiliated hacker group compromised a Seedify developer’s private key.
With this access, they gained control over the Omnichain Fungible Token (OFT) bridge contract on Avalanche.
They changed contract settings to mint ~8.79M unauthorized $SFUND.
Tokens were bridged to Ethereum, Arbitrum, Base, and BNB Chain using LayerZero infrastructure.
The attackers drained liquidity pools on multiple chains and sold the tokens for ETH, BNB, and other assets.
Profit from exploit: ~$1.2M to $1.7M. Key exploiter wallet: 0xBA5126f3f5dEDD02cAC8a16FB5C79d94526f719E. On-chain attribution: Linked to DPRK campaigns by on-chain investigator @zachxbt.
It’s important to note the vulnerability was not due to flawed smart contract code. The protocol itself had been audited and stable for three years. The breach arose from human-level security private key compromise—an area often overlooked compared to code audits.
Impact on $SFUND Price and Market
The exploit immediately triggered panic selling and liquidity drains.
Price Movement Stages
Stage
Price Movement
Notes
Pre-attack
$0.40–0.65
Normal trading range
Crash
$0.04–0.05
Nearly 99% wipeout
Partial recovery
$0.17–0.21
Thin liquidity, heavy volatility
Effects on stakeholders:
Holders: ~64,000 wallets impacted, especially on BNB Chain.
Liquidity: PancakeSwap and other pools drained quickly.
Exchanges: Bybit, OKX, and other CEXs halted trading and deposits.
The fallout mirrors previous bridge hacks across DeFi. While the absolute dollar loss was smaller than exploits like Ronin (2022), the damage to trust was significant.
Seedify’s Response and Recovery Efforts
Seedify acted quickly to contain the incident.
Immediate measures:
Suspended all bridges and revoked compromised permissions.
Blacklisted attacker addresses across chains.
Coordinated with LayerZero, SlowMist, and auditors for investigation.
Halted centralized exchange trading to prevent further dumping.
External support:
Binance founder CZ was contacted, and ~$200K in funds was frozen on HTX.
On-chain security community, including @zachxbt, provided evidence tying attackers to DPRK-linked operations.
User guidance:
Avoid buying $SFUND on non-BNB chains until clearance.
Revoke bridge-related approvals using tools like Revoke.cash.
Protocol contracts, wallets, and website remain secure—the breach was isolated to bridge minting.
Despite swift action, Seedify has not announced a firm timeline for restoring bridge operations.
Similar Hacks in the Past
Major Cryptocurrency Hacks Attributed to North Korea-Affiliated Groups (Concise)
Note: This table covers major incidents; smaller thefts are excluded for brevity. For more details, refer to official reports or blockchain analytics.
Risks and Broader Implications
The $SFUND exploit highlights several risks:
Private Key Security: Even audited, functional contracts can be undermined if private keys are compromised.
Cross-Chain Complexity: Bridges remain DeFi’s most frequent attack surface. Each added chain multiplies risk.
Community Trust: Holders are more cautious after liquidity wipes, reducing confidence in new launches.
Geopolitical Threats: State-backed hacker groups continue to target crypto infrastructure, often with funding motives.
For investors, the main lesson is that “code audits ≠full security.” Key management and human security practices are equally critical.
Why It Matters for Readers
This incident is more than a one-off hack. It reinforces that:
Holding tokens in multi-chain ecosystems carries hidden risks.
Users must stay informed and revoke approvals after incidents.
Builders need layered security, not just audits.
Regulatory attention will likely intensify as DPRK and similar groups continue targeting crypto.
If you are a holder, the short-term concern is volatility. In the long run, how Seedify handles transparency and recovery will decide whether \$SFUND can rebuild credibility.
TLDR
$SFUND exploit (Sept 23, 2025): attackers minted ~8.8M tokens via a compromised dev key.
Losses: ~$1.2–1.7M drained, mostly through cross-chain bridges.
Impact: price crashed 99% before rebounding near $0.20.
Response: Seedify froze bridges, blacklisted wallets, and engaged auditors.
Scope: BTC/ETH safe — breach was bridge-specific, not protocol-wide.
