Breaking Hedera Network Experiences ‘Technical Irregularities’ – Community Alleges Exploit

2 mins
9 March 2023, 14:25 GMT+0000
Updated by Geraint Price
10 March 2023, 10:24 GMT+0000
In Brief
  • Hedera network is undergoing an exploit in smart contracts.
  • Many dApps are impacted.
  • The TVL in the blockchain dropped by nearly 25%
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Updated 10:00UTC, 10 March: Hedera today confirmed that attackers had hacked its Smart Contract Service code.

In a statement published on Twitter, the company said: “To prevent the attacker from being able to steal more tokens, Hedera turned off mainnet proxies, which removed user access to the mainnet. The team has identified the root cause of the issue and are working on a solution.”

Hedera network faces an ongoing exploit targeting the decompiling process in smart contracts. The decentralized exchange (DEX) SaucerSwap Labs has asked users to withdraw their liquidity.

SaucerSwap Labs, a DEX on the Hedera network, encouraged users to “withdraw the liquidity” immediately as an alleged ongoing exploit hit the blockchain.

The decompiling process converts the contract’s bytecode into more readable Solidity-like code, allowing for a better understanding.

Hedera TVL Dropped 25%

In response to the attack, Hashport has paused its bridging facilities to ensure the safety of users’ funds. The Pangolin DEX has also asked users to withdraw tokens from Pangolin pools and farms. SaucerSwap said it has been unaffected by the exploit.

The Total Value Locked (TVL) has dropped nearly 25% in 24 hours as of writing following the hack.

The community manager of SaucerSwap told BeInCrypto that the size of the exploit is yet to be confirmed. However, a Discord member estimates that bad actors accessed around four to five million Hedera tokens (HBAR).

Image source: DefiLlama

Hedera is an enterprise-grade network that champions fairness, scalability, and speed. IBM’s Hyperledger Fabric, a type of distributed ledger, is one user.

It uses a proof-of-stake consensus mechanism and is secured by institutional validators who are rewarded for contributing computational resources and validating transactions in proportion to how much of the network’s cryptocurrency they hold

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BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.