Hackers Exploit Ethereum (ETH) Rival, Normal Activity Paused To Prevent Theft of More Tokens

Layer-1 blockchain Hedera (HBAR) had to pause normal activity this week due to a hack on its smart contract service code. The Ethereum (ETH) competitor acknowledged the exploit in a tweet on Thursday.

Timeline of Hedera

Hedera Hashgraph has confirmed a smart contract exploit on its mainnet, resulting in the theft of liquidity pool tokens from decentralized exchanges (DEXs) that use code derived from Uniswap v2 on Ethereum. The suspicious activity was detected when the attacker attempted to move the stolen tokens across the Hashport bridge, leading operators to temporarily pause the bridge.

In a Twitter announcement, Hedera confirmed an exploit in its mainnet, leading to a loss of liquidity tokens. However, the firm noted the exploit did not impact its consensus layer.

HBAR Crypto News: Hedera aka distributed ledger technology, Hashgraph on Friday confirmed that the attackers took control and exploited their Smart Contract Service. This action led to the theft of many liquidity pool tokens.

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.

Hedera has announced that it has turned off network proxies on its mainnet due to an exploit. Critical network services like wallets, decentralized exchanges, and others will be available again once the problem is solved.

The Hedera Network services are experiencing a critical moment with an ongoing exploit that compromises the network's tokens after discovering irregularities affecting various Hedera dApps, Liquidity Pool (LP) tokens, wrapped tokens, and their users. The Hedera Foundation (HBAR) tweeted: We've noticed network irregularities that are impacting various Hedera dApps and their users.The Foundation is in communication with impacted partners.

Key Points: The HBAR Foundation, the non-profit organization behind the Hedera blockchain, confirmed the problem about 4 hours ago. On March 9, the HBAR Foundation issued an unexpected warning concerning an unusual circumstance impacting decentralized apps (dApps) and Hedera users.

HBAR Crypto News: What comes as a surprise to the crypto community, major DApps running on top of the Hedera (HBAR) network recently pointed out suspicious activities and have therefore halted operations. Many are speculating it to be a malicious exploit or a planned attack, rather than a technical glitch in the system.

The HBAR Foundation, the organization working on the Hedera blockchain, said that it had noticed network irregularities affecting various Hedera decentralized applications (dApps) and their users.

The Hedera network is still one of the layer-1 blockchains that have been rapidly gaining popularity. While this was a big factor in HBAR's bullish bounce since the start of the year, it has not been enough to prevent the loss of a third of its YTD gains.