SNEAK PEEK
- Hedera has disclosed that the smart contract exploit has neither affected the network nor its consensus layer.
- Hedera disclosed that the attacker targeted liquidity pools on several decentralized exchanges to steal assets.
- The total tokens that were stolen have not been disclosed by Hedera.
Hedera has taken to Twitter to share an update regarding a smart contract exploit on the Hedera Mainnet. A number of liquidity pool tokens were stolen in the attack.
According to Hedera, the attacker targeted accounts that are deployed as liquidity pools on several decentralized exchanges that utilize Uniswap v2-derived contract code that was ported to utilize the Hedera Token Service.
The suspicious activity was identified when the attacker tried to move the stolen tokens over the Hashport bridge, which had liquidity pool tokens on Pangolin, HeliSwap, and SaucerSwap. However, operators paused the bridge temporarily.
Hedera upgraded the network to convert EVM-compatible smart contract code to HTS, or Hedera Token Service, on February 3.
An aspect of the process is decompiling Ethereum contract bytecode to the HTS, which according to SaucerSwap is where the attack vector came from, though there’s no confirmation.
On March 9, Hedera closed network access by turning off IP proxies. The team shared that it had found out the major reason for the attack and was working on a solution.
The Hedera community, including @swirldslabs, @HBAR_foundation, @LimeChainHQ, @Pangolin_Hedera, @SaucerSwapLabs, and @HeliSwap_DEX teams worked together to investigate the attack. (4/6)
— Hedera (@hedera) March 10, 2023
When the solution is ready, Hedera Council members will sign transactions and authorize the deployment of updated code on the mainnet to eliminate the vulnerability. The mainnet proxies will be turned back on to enable the usual activity to start again.
The team suggested owners of tokens check the balances on both their account ID as well as EVM address on hashscan.io.
All HashPack functionality will be unavailable during this downtime 👇 https://t.co/ngaRmg00Zi
— HashPack Wallet (@HashPackApp) March 9, 2023
Token Hedera’s price has decreased 7% along with the broader market fall. The total value locked on SaucerSwap declined over 30%, from $20.7 million to $14.58 million.
A number of token owners withdrew their funds after the initial discussion of a possible attack.
The attack has sabotaged a prominent milestone for the network since the Hedera mainnet exceeded 5 billion transactions on March 9.
#Hedera: 5 BILLION mainnet transactions!
Real transactions. Real applications. Real-world #utility. Are you watching?
We are witnessing #DLT adoption on an unprecedented scale.
This is only the beginning. pic.twitter.com/n0TbWTJmC0
— Hedera (@hedera) March 8, 2023
Ever since Hedera launched in July 2017, this seems to be the first reported network exploit.
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- Source: https://investorbites.com/smart-contract-attack-hedera-lost-liquidity-pool-tokens/
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