• Hedera Network has stopped access to its wallet and app due to technical irregularities that may be a possible exploit in its smart contracts.
• SaucerSwap, a DEX on the Hedera Network, has encouraged users to withdraw their liquidity from the platform.
• The issue is related to the decompiling process in smart contracts.
Hedera Network Loses Access
The Hedera network has stopped all access to its wallet and app as it investigates technical irregularities, which could be due to a possible exploit in its smart contracts. As a result of this action, SaucerSwap, a decentralized exchange (DEX) on the Hedera Network, has encouraged its users to withdraw their liquidity from the platform.
Wallet And App 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. The team at Hedera stated that despite recent developments, the mainnet would continue to remain operational and is reaching consensus on new blocks. However, the network remains inaccessible to most users. Hedera has stated that access and proxies will be re-enabled once the issues have been resolved.
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. Hedera has come under significant flak from its community, which has now begun questioning the project’s commitment to complete decentralization. They pointed out that Hedera’s leveraging of proxies indicated that only a few parties exercise control over the network rather than an entire community. Hedera maintained complete control of the proxies at the time of their launch. However, it had stated that it planned to give control to council members at a later date.
A Possible Exploit?
Hedera stated on the 9th of March that the problem was due to the smart contract issues it was facing. As a result, popular bridge service Hashport also paused its services in a bid to contain the issue. Hedera has given very little information relating to exactly what caused these issues but independent blockchain researcher Ignas tweeted about an ongoing exploit possibly hitting HderadApps usingHTS like LP tokens or wrapped tokens being affected by this exploit targeting decompiling processes within smart contracts with advice “get your funds out now” .
In conclusion we can see how extremely important security measures must be taken when dealing with cryptocurrency especially when using decentralized networks like hederas where user funds are involved .It is advised for everyone who uses crypto currency platforms no matter how big or small they are ,to take extra precautionary measures for safety reasons .