Seedify Fund, a prominent Web3 incubator and launchpad, suffered a major security breach this week when its $SFUND bridge was exploited. The attack drained at least $1.2 million in assets, sparking immediate fear and driving the token’s price down by nearly 59.8% in a single day.
Although early rumours placed the stolen amount as high as $8.8 million, the confirmed figure is far lower. Still, the exploit has raised serious concerns about the vulnerabilities of cross-chain infrastructure and the rising sophistication of cybercriminals.
Hack Details and Immediate Fallout
The incident specifically targeted the SFUND bridge, a component designed to enable cross-chain interoperability. Developers have not yet confirmed the exact vulnerability but suspect flaws in either cross-chain messaging or bridge logic.
Following the breach, one of Seedify’s founders quickly notified the community and urged users to avoid all SFUND bridges until further notice. The team also appealed to CZ, the former Binance CEO, to help freeze approximately $1.2 million that was bridged to BNB Chain in the aftermath of the hack.
Although the attackers have not conducted large-scale token dumps yet, the market reaction was swift and brutal. The price of SFUND plunged by nearly 60%, wiping out significant value for holders and casting a shadow over Seedify’s recent ecosystem growth.
A North Korean Connection Emerges
Perhaps most concerning is the suspected origin of the hack. Crypto investigator ZachXBT, who was offered a “huge bounty” by Seedify to assist in the probe, revealed that on-chain evidence ties the theft wallets to a North Korean group.
Surprisingly, this was not the infamous Lazarus Group, known for some of the largest hacks in crypto history, but rather Contagious Interview, a lesser-known yet dangerous organisation believed to have operated for years.
If accurate, this points to a new wave of North Korean cybercriminals expanding operations in the crypto space. With the DPRK already linked to billions in stolen digital assets, the emergence of additional groups suggests the problem could be far deeper and more decentralised than previously thought.
Impact on Users and the Wider Community
The exploit reportedly affected over 64,000 BNB Chain users, underlining the far-reaching consequences of bridge vulnerabilities. Bridges remain one of the weakest points in DeFi infrastructure, with multiple high-profile hacks such as Ronin and Harmony, already causing billions in losses over the past two years.
For Seedify, the hack marks a painful blow to its reputation. The platform has been instrumental in supporting gaming and metaverse projects, using SFUND as a backbone for ecosystem development. This latest setback may undermine community trust and slow momentum in a highly competitive sector.
What Happens Next?
Seedify developers are now focusing on damage control, collaborating with investigators and attempting to freeze compromised funds. The project’s warning to avoid bridge usage signals that vulnerabilities may persist until a thorough security audit is completed.
Meanwhile, the involvement of a North Korean-linked group raises fresh alarms for global regulators, exchanges and DeFi projects. As new hacker rings emerge alongside Lazarus, the industry faces an escalating challenge in securing cross-chain infrastructure against state-backed cyber threats.
For investors and users, the SFUND exploit is yet another reminder of the risks inherent in DeFi’s most experimental layers. With $1.2 million confirmed lost, thousands of users impacted and token value slashed nearly in half, the Seedify hack may well become another case study in the urgent need for stronger cross-chain security measures.
