Hedera Hashgraph (HBAR) Facing Technical Issues, Suspected Attack?
The HBAR Foundation, the nonprofit organization behind the Hedera blockchain, has confirmed a technical issue approximately an hour ago.
Hedera Hashgraph (HBAR) Facing Technical Issues, Suspected Attack?
Update on March 10, 2023:
By midday on March 10, the HBAR Foundation confirmed that the Hedera Hashgraph blockchain had been attacked via the Smart Contract Service code. The attack involved stealing funds from users providing liquidity on DEXs using Uniswap v2 forks, including Pangolin, SaucerSwap, and HeliSwap.
Today, attackers exploited the Smart Contract Service code of the Hedera mainnet to transfer Hedera Token Service tokens held by victims’ accounts to their own account. (1/6)
— Hedera (@hedera) March 10, 2023
During the process of moving the stolen assets through the Hashport bridge, the attack was detected and stopped. The HBAR Foundation has not disclosed the amount of damage but is currently investigating the root cause in collaboration with the involved projects.
To prevent further exploitation of the vulnerability, the HBAR Foundation has decided to disconnect users from the blockchain. The network will resume normal operations only after the issue is fully identified and resolved.
Original Article:
We’ve noticed network irregularities that are impacting various Hedera dApps and their users.
— HBAR Foundation (@HBAR_foundation) March 9, 2023
The Foundation is in communication with impacted partners. We’re monitoring and working to help resolve the issue.
Please standby for more information.
On the evening of March 9, the HBAR Foundation issued an urgent alert about unusual activity affecting decentralized applications (dApps) and users of Hedera.
Hashport, a bridge project, also decided to temporarily halt services to isolate the issue.
We’ve noticed network irregularities that are impacting various Hedera dApps and their users.
— HBAR Foundation (@HBAR_foundation) March 9, 2023
The Foundation is in communication with impacted partners. We’re monitoring and working to help resolve the issue.
Please standby for more information.
At the same time, the DEX Pangolin on the Hedera network advised users to withdraw liquidity from the platform. Pangolin's announcement stated:
“Due to unusual issues with the Hedera network, Hashport has paused their bridge services. We recommend that anyone with HTS tokens in Pangolin's pool or farm withdraw their funds immediately. We will provide updates as more information becomes available.”
Due to some Hedera network irregularities, Hashport has paused their bridge, and we'd encourage anyone with HTS tokens in Pangolin Pools and Farms to withdraw immediately.
— Pangolin Hedera (@Pangolin_Hedera) March 9, 2023
This is a time critical moment, so we'll update as soon as we have more information
According to available information, the DeFi project SaucerSwap Labs, also operating on Hedera, reported that the network showed signs of insecurity from this morning, targeting the decompilation of smart contracts.
🚨An ongoing exploit have hit the Hedera network this morning. The exploit is targeting the decompiling process in smart contracts. At time of writing attackers have hit Pangolin and HeliSwap pools containing wrapped assets. We are unsure if other HTS tokens are at risk too.
— SaucerSwap Labs 🧪 (@SaucerSwapLabs) March 9, 2023
We…
SaucerSwap Labs suspects that DEXs Pangolin and HeliSwap, which use wrapped tokens, may have become targets of malicious actors, although no concrete evidence has been provided to support this claim.
Decompilation is the process of converting executable files into higher-level programming languages that are easier for humans to understand. It is commonly used to analyze and understand the behavior of smart contracts. However, it can also be used by malicious attackers to gain unauthorized access to or manipulate smart contracts, potentially draining assets from the platform.
As of now, the HBAR Foundation is working with various parties to monitor and address the situation.
Hedera is a Proof-of-Stake blockchain similar to Algorand, Cardano, Ethereum, Tezos, and Polkadot. Its focus on ESG (Environmental, Social, and Governance) standards continues to attract major players, including Dell.
Despite the concerns, the price of Hedera Hashgraph's HBAR has not shown a significant reaction and is currently trading around $0.06.
15-minute Chart of HBAR/USDT on Binance at 21:35 PM on March 9, 2023
