"Seedify's 60% Token Plunge Exposes Crypto's North Korean Cyber Weakness"

Seedify’s native token SFUND plummeted nearly 60% following a suspected cyberattack attributed to North Korean hacking groups, according to market data and analysis from crypto tracking platforms. The token, which had a market capitalization of $12.8 million as of the incident, saw its price fall to $0.20, a stark decline from its previous levels. Trading volume for SFUND dropped by 48.5% in the 24 hours following the event, signaling a sharp contraction in market activity. The token’s underperformance—down 24.2% over seven days—contrasted with gains in the broader cryptocurrency market and Ethereum-based projects.

The suspected breach aligns with a surge in North Korean-led crypto heists, which have stolen over $2.17 billion in 2025 alone, according to Chainalysis. A single incident at Bybit, a major exchange, accounted for $1.5 billion in losses, with North Korean operatives laundering $160 million within 48 hours. Chainalysis attributes 70% of global crypto thefts to North Korea, which leverages stolen assets to fund its nuclear and missile programs. The attack on Seedify appears to fit this pattern, though the firm has not publicly confirmed the breach.

Seedify’s token economics further highlight the vulnerability of its ecosystem. With a circulating supply of 63.6 million tokens out of a maximum 100 million, the token’s fully diluted valuation (FDV) stands at $20.1 million, suggesting a theoretical ceiling if all tokens were in circulation. The platform’s multi-chain staking model and tiered allocation system, designed to incentivize early participation, may have exposed it to exploitation through compromised smart contracts or phishing attacks.

The incident has intensified regulatory scrutiny of crypto security. The U.S. Department of Justice recently convicted Tornado Cash’s co-founder for enabling illicit money laundering, while the FBI confirmed the Lazarus Group’s role in the Bybit heist. These actions underscore a broader crackdown on infrastructure facilitating North Korean cybercrime. However, experts note that decentralized exchanges and privacy-focused protocols continue to pose challenges for enforcement, as seen in the Bybit case where stolen funds were rapidly dispersed across 50+ wallets.

Market participants are now weighing the implications for investor confidence. The hack coincided with a 20% drop in Bitcoin’s price from its January peak, reigniting concerns about crypto’s susceptibility to large-scale attacks. Seedify’s decline reflects a broader trend: projects with weaker security frameworks face heightened risks amid an escalating arms race between hackers and regulatory bodies.

[Source:]

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[10] North Korean hackers steal record $1.5 billion in … (https://www.cnn.com/2025/02/24/politics/north-korean-hackers-crypto-hack)

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