• Hedera Network has blocked access to its wallet and app due to irregularities in its smart contracts.
• SaucerSwap, a decentralized exchange (DEX) on the Hedera Network, is encouraging users to withdraw their liquidity from the platform.
• The issue seems to be related to an exploit targeting the decompiling process in smart contracts.
Hedera Network Blocks 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.
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.
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, so far, given very little information relating to the exact nature of the problem. However, independent blockchain researcher Ignas tweeted that an ongoing exploit was hitting Hedera and that all decentralized applications using the Hedera Token Service (HTS) were impacted.
Exploit Targeting Decompiling Process
Ignas further elaborated that the issue was related to the decompiling process in smart contracts. He suggested that users should get their funds out as soon as possible before any further damage can be done by this exploit or other similar ones targeting similar processes in smart contracts deployed on different networks.
Conclusion
In conclusion, access and proxies will be re-enabled once issues have been resolved and investigated by Hedera team thoroughly with special attention paid towards security measures implemented against such exploits in future releases of their products and services .