Hedera Network Suffers Major Hack Attack

The core developers at Hedera have confirmed that hackers have recently targeted several liquidity pools on its DEX platforms. The crypto entity is currently dealing with the theft of tokens taken from its native DEXs. According to the project engineers, hackers targeted a bug in the smart contract of the protocol.

Hedera has confirmed the presence of an exploit point that was available in the network which was exploited by the hackers. On account of this technical blind spot, hackers were able to siphon funds from the private accounts of the users that were using the network.

Hedera project hackers have stolen the Hedera Token Service or HTS tokens out of the user’s accounts. These stolen funds have been redirected to the personal accounts of the hackers that are out of the users.

These funds were stolen using the vulnerability in the Hedera Smart contract service. These smart contracts operate as a second-layer protocol that is compatible with Ethereum-based dApps.

The official team of Hedera has reported that the firm has reportedly exploited the smart contract service code on the Hedera mainnet. In this manner, they were able to gain access to the user’s wallet addresses.

The firm has also reported that hackers focused on targeting liquidity pools that were operating in several decentralized exchanges that were on the Hedera protocol.

Hedera Employs Several DeFi Protocols to Recover Stolen Funds

At present, Hedera is working in tandem with other DeFi protocols to troubleshoot. The top priority of Hedera developers is to stop the theft of more tokens. To halt the cyber invasion, the firm has decided to turn off the mainnet proxies which meant cutting off user access.

The attack on Hedera has impacted DEX projects such as Pangolin, SaucerSwap, HeliSwap, and others. At present all the DeFi projects that are affected by this invasion are working together to patch the damage. As soon as the patch is deployed on the mainnet the team will resume the mainnet proxies.

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