Hedera confirms that hackers stole tokens from DEXs, exploiting a flaw in the “smart contract service”.

Hedera’s core team confirmed that there was a recent exploit on the network where hackers stole funds through user accounts on decentralized exchanges, it said.

The attackers exploited a vulnerability in the Hedera Smart Contract Service to transfer the Hedera Token Service (HTS) tokens in user accounts to their own accounts. The Hedera Smart Contract Service is a separate compute layer integrated into the network to help run Ethereum-compatible apps.

“Today, attackers exploited the Hedera mainnet’s smart contract service code to transfer Hedera Token Service tokens held by victims’ accounts to their own accounts,” according to the team tweeted from his official account.

Hedera’s core team reported that the attackers were targeting liquidity pools on multiple decentralized exchanges (DEXs) that had bridged Hedera tokens to the network’s smart contract service. The affected multiple DEXs, including Pangolin, SaucerSwap, and HeliSwap.

Today’s confirmation of the exploit comes a day after the HBAR Foundation, the organization behind the blockchain, made a public announcement notified “Network anomalies” affecting various Hedera-based decentralized applications (dApps) and their users.

Disabling access to the mainnet

Several projects in the Hedera ecosystem have collaborated to study the issue. To prevent further token theft, the Hedera team temporarily shut down the “mainnet proxies”, removing users’ access to the mainnet.

“To prevent the attacker from being able to steal more tokens, Hedera disabled mainnet proxies, removing user access to the mainnet. The team has identified the root cause of the issue and is working on a fix,” added the Hedera team.

Several teams are still developing a solution to patch the vulnerability. Once the fix is ​​complete, Hedera Council members will sign transactions to approve deployment of the updated code to the mainnet to address the vulnerability. Mainnet proxies will be turned back on and normal activity will resume, the team added.

© 2023 The Block Crypto, Inc. All rights reserved. This article is for informational purposes only. It is not offered or intended to be relied upon as legal, tax, investment, financial or other advice.

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers