Hackers Attack Ethereum (ETH) Competitor, Normal Activity Suspended To Avoid Further Token Stolen

Layer-1 blockchain technology Hedera (HBAR) was forced to suspend regular operations owing to an attack on its smart contract service code.

The Ethereum (ETH) rival recognized the vulnerability in a tweet on Thursday. “Today, attackers took advantage of a vulnerability in the Hedera mainnet’s Smart Contract Service code to steal tokens from unsuspecting users’ Hedera Token Service accounts.

Pangolin Hedera, SaucerSwap Labs, and HeliSwap DEX are just some of the DEXs that were attacked; all three employ contract code is taken from Uniswap v2 and ported over to use the Hedera Token Service as their liquidity pools.

As the attackers transferred tokens gained via these methods over the Hashport Network bridge, the operators quickly disabled the activity.

Hedera claims to have disabled mainnet proxies to cut off the hacker’s access to the network and prevent further token theft.

On Friday night, Hedera’s chief marketing officer, Christain Hasker, stated that the website was once again accessible.

According to Defi Llama, Hedera’s total value locked (TVL) fell from around $36.81 million before the breach to $24.57 million on Friday afternoon, a more than 33 percent loss.

The total value of a whole blockchain’s TVL is the sum of all the currency currently used by its smart contracts. To determine TVL, multiply the total amount of collateral locked into the system by the asset’s current market value.

When writing, HBAR, Hedera’s native asset, is trading for around $0.0594, almost comparable to its previous price to the exploit.

Read Also: Robert Kiyosaki predicts the failure of a third U.S. bank, while Peter Schiff predicts a "greater collapse" in the future

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

Comments are closed.