Filament Finance Reports $572K Exploit, Pauses Operations And Offers White-Hat Bounty Recovery Effort
In Brief
Filament Finance reported a targeted exploit resulting in unauthorized fund withdrawals linked to price manipulation within its order book.
Decentralized exchange (DEX) for on-chain derivatives on the Sei Network, Filament Finance reported a targeted exploit resulting in unauthorized fund withdrawals linked to price manipulation within its order book.
According to the platform, the exploit occurred between April 6, 12:00 AM and 4:00 AM UTC. The attackers reportedly used coordinated strategies involving large order placements and self-liquidation mechanisms across multiple accounts. Prior to the incident, user deposits totaled approximately $680,000, with an estimated $572,000 lost as a result of the exploit.
In response, Filament Finance has taken immediate security measures: trading and withdrawals have been temporarily suspended to prevent further losses. The platform is actively investigating the incident in collaboration with law enforcement and experienced blockchain forensic firms.
The platform has reported that the attacker’s movements have been traced, with stolen funds routed through the Symbiosis Bridge and primarily into the FixedFloat exchange. Wallet addresses and related transaction data have been compiled and shared with relevant authorities and security partners to assist in the asset recovery process.
The Filament team has also reached out to major decentralized finance (DeFi) and ecosystem partners to support coordinated recovery efforts. Currently, the project’s website is undergoing maintenance and remains temporarily inaccessible.
Filament Finance Offers White-Hat Bounty To Exploiter In Bid For Asset Recovery And Peaceful Resolution
As part of its response to the recent exploit, the platform has also announced a public offer to the attacker—a 10% white-hat bounty—in exchange for the voluntary return of 90% of the compromised funds. This proposal is conditional upon full cooperation and the complete return of assets. Filament Finance has expressed a willingness to engage in constructive dialogue, aiming to resolve the matter without further escalation. However, it emphasized that this is a time-sensitive opportunity intended to encourage a responsible resolution and avoid potential legal consequences.
Filament Finance operates as a decentralized perpetual exchange on the Sei Network, developed to optimize the trading experience for both individual traders and liquidity providers. Through the use of a hybrid model that combines off-chain order books with on-chain liquidity pools, the platform seeks to solve persistent issues such as insufficient liquidity in niche markets and inefficient capital usage. This approach allows Filament to offer trading performance comparable to that of centralized platforms, even in lower liquidity environments. In September 2024, the project secured $1.1 million in seed funding from several backers, including Lingfeng Innovation Fund, Halo Capital, and Spyre Group.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
