Hedera blockchain halts due to hacker attack

Representatives of the network did not name the amount stolen as a result of the hack

10.03.2023 - 11:15

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What’s new? On March 10, Hedera representatives reported that the blockchain platform had been hacked. According to them, the attackers used the mainnet’s smart contracts service code to transfer service tokens from victims’ wallets. Accounts used as liquidity pools on several decentralized exchanges (DEXs), including Pangolin, HeliSwap, and SaucerSwap, were targeted. For security purposes, the Hedera team disabled the mainnet proxies. It has reportedly identified the root cause of the problem and is working on a solution.

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

What else is known about the situation? According to a statement on Twitter, serious damage was avoided due to the prompt actions of the Hashport bridge team, which was used by hackers to transfer funds. However, representatives of the blockchain did not name the exact amount of damage.

Once the team forms a solution, Hedera Council members will approve the deployment of updated code to the mainnet to fix the vulnerability, allowing the platform to resume normal operations.

What is known about Hedera? The blockchain applies directed acyclic graphs (DAGs) without grouping transactions into blocks. This technology makes it possible to achieve high throughput, up to 10 000 transactions per second (TPS), and stable energy efficiency, the developers say. Hedera'’ native token, HBAR, is trading at $0,0678 as of March 10, at 10:00 UTC, having gained 12,44% in 24 hours, according to Binance.

HBAR was among the tokens with growth potential in January, along with DGB, HT, KAVA, KSM, SOL, and ZEC. Analysts at Santiment found that traders were actively shorting these altcoins, and some of them were ready to liquidate short positions.

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