• Hedera Network has stopped access to its wallet and app due to possible exploit in smart contracts.
• SaucerSwap, a DEX on the Hedera Network, has encouraged users to withdraw liquidity from the platform.
• Reason for decision is not clear yet, but it could be related to an ongoing exploit targeting decompiling process in smart contracts.
Hedera Network Access Blocked
The Hedera Network has announced that it will turn off all network proxies on its mainnet as it investigates irregularities discovered in its smart contracts. This means that users cannot access or use wallets, decentralized exchanges, decentralized applications, and centralized exchanges on the network. Despite recent developments, the mainnet will continue to remain operational while reaching consensus on new blocks.
Reason For Decision
Hedera stated that the action was necessary and it was taking it in „an abundance of caution for users.“ However, the project has not disclosed whether any funds have been compromised or stolen. The team at Hedera maintained complete control of the proxies at the time of their launch and had stated that it planned to give control to council members at a later date.
Independent blockchain researcher Ignas tweeted that an ongoing exploit was hitting Hedera and that all decentralized applications using the Hedera Token Service (HTS) were impacted. According to Ignas‘ tweet, this exploit targeted the decompiling process in smart contracts with advice being given to get funds out now. Popular bridge service Hashport also paused its services in a bid to contain this issue.
SaucerSwap Users Impacted
As a result of this action by Hedaera Network, SaucerSwap – a DEX on the same network – encouraged its users to withdraw their liquidity from the platform as soon as possible for safety reasons.
Hedera’s community began questioning the project’s commitment to complete decentralization following this announcement due to them leveraging proxies instead of having an entire community involved with control over network functions.