Hedera Closing its Network Services Following a Smart Contract Exploit
On March 9, the Texas-based decentralized distributed network Hedera announced the closure of its network services after smart contracts irregularities. The tweet revealed the network irregularities experienced on the Hedera platform necessitated the company to take tentative steps to safeguard the user from exploits.
Nature of Hedera Exploit
The network exploits battling Hedera have created heated debates on Twitter, challenging the firm to engage other experts to scrutinize the matter.
Based on Ignas’ findings, the exploit launched on Hedera’s smart contract aimed at distorting the system’s decompiling processes. The research firm that deals with decentralized finance (DeFi) concerns have advised the Hedera users to withdraw their assets from the platform.
Ignas’ decision was supported by SaucerSwap Labs, who revealed that the attack had compromised the Pangolin and HeliSwap networks used to store wrapped digital assets.
Hedera’s Next Move
The innovative solutions shared by the Ignas team have prompted Hedera to close its network services temporarily. Hedera has pledged to prioritize developing suitable solutions to address the concern.
In the meantime, the Hedera team will issue a report on the cause of the exploit after they complete their investigations. The exploit concern has negatively affected the Hedera native token (HBAR) reading.
At press time 07:15 UTC, HBAR is exchanging hands at $0.05723 after experiencing a sharp decline of 6.12% in the last 24 hours. According to data issued by CoinMarketCap, HBAR reached its lowest at $0.05481 before bouncing to its highest at $0.06106.
A report from DefiLlama data revealed that HBAR total value locked (TVL) amounts to $24.6 million, a 16.80% drop within a day.
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