Hedera Network Pauses Access to Wallets, Apps Due to Exploit

• Hedera Network has blocked access to its wallets and apps due to irregularities found in its smart contracts.
• SaucerSwap, a DEX platform on the network, has encouraged users to withdraw their liquidity from the platform.
• The issue is related to an exploit targeting the decompiling process in smart contracts.

Hedera Network Blocks Access

The Hedera Network has blocked 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.

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. This decision by Hedera has come under significant flak from its community who have now begun questioning the project’s commitment to complete decentralization as they point out that Hedera’s leveraging of proxies indicates that only a few parties exercise control over the network rather than an entire community.

A Possible Exploit?

Hedera stated on the 9th of March that the problem was due to issues with their smart contract. As a result, popular bridge service Hashport also paused its services in a bid to contain the issue. Independent blockchain researcher Ignas tweeted that an ongoing exploit was hitting Hedera and all decentralized applications using their Token Service were impacted. He further elaborated that this exploit targeted decompiling processes in smart contracts and advised people to get their funds out immediately.

Network Remains Inaccessible

The team at Hedera stated despite recent developments;the mainnet would continue to remain operational and is reaching consensus on new blocks however;the network remains inaccessible for most users until further notice.

Access To Be Re-enabled

Hdera has stated that access and proxies will be re-enabled once these issues have been resolved however no timeline for this resolution has been provided as yet by them.