At Twitter announcement, Hedera confirmed the exploit on the mainnet, resulting in the loss of liquidity tokens. However, the company notes that the exploit does not affect the consensus layer.
Network exploitation is one of the challenges in many crypto projects, with the DeFi protocol recording the highest hack incidence since 2021. The latest exploit is Hedera, a decentralized, open-source, proof-of-stake public ledger.
Hedera Has Mainnet Exploit Details
Hadera is the company behind the Hedera Hashgraph distributed ledger. In the latest hack, the attackers exploited the Smart Contract service code on the mainnet and transferred service tokens from user account to account.
Hackers targeted liquidity pool accounts at several decentralized exchanges (DEX) that use contract code derived from Uniswap V2, including Pangolin Hedera, SaucerSwap Labs, and HeliSwap DEX. The announcement explained that the criminals transferred the stolen tokens to the Hshport Network Bridge. However, the bridge operator detected the unusual activity and took swift action to shut it down.
Hedera further noted that they are working with the community, including HBAR Foundation, Swirlds Labs, Pangolin Hedera, Lime Chain HQ, SaucerSwap Labs, and HeliSwap DEX, to investigate the attack. The company also implemented measures to prevent hackers from stealing other tokens. On March 9, the network disabled its mainnet proxy, limiting access to the network.
Hedera’s announcement also revealed that the team has identified the cause of the attack and is working on a solution. When they find a solution, Council members will enter into a transaction to authorize the deployment of new code on the mainnet to remove the vulnerability.
The protocol notes that the mainnet proxy will start after the problem is resolved, allowing normal activities to continue on the network.
New Hack Incident Dents Milestone Hedera Network
When explaining the methods used by the hackers and possible solutions to the problem, Hedera failed to disclose the number of tokens the hackers stole. As a Twitter user commentsThe block appears to be very secure, but recent attacks show otherwise.
Previous network improved network to convert Ethereum Virtual Machine (EVM) compatible Smart Contract code to Hedera Token Service (HTS). This process partly involves decompilation of Ethereum contract bytecode into HTS, where DEX is based on Hedera. SaucerSwap thought hack vector appears. But the Twitter post did not confirm the source of the vulnerability.
After disabling the network proxy, the Hedera team recommended token holders check their account balances and EVM addresses on hashscan.io to ensure their funds are intact.
Meanwhile, the HBAR price has declined 8.5% in the last 24 hours and is trading at $0.05721. The drop in prices is not only due to the latest attack but also to the ongoing fall in the market.
However, the total value is locked in SaucerSwap 30% off, fell from $20.7 million to $14.58 million in the last 24 hours.
The drop in total value locked shows many token holders quickly withdrew their funds after initial discussions about potential hack exploits. The incident led to a new blockade historical milestone after its mainnet reached 5 billion transactions.
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