Hedera Suffers Security Breach: Attacker Targets Smart Contract Service

03/10/2023 05:31 • Tech Trends • 165 views

On March 10, Hedera disclosed the details of the attack. The attacker attacked the smart contract service code of Hedera’s main network and transferred the Hedera Token service token held by some user accounts to his own account. The target of the attacker is to use accounts as liquidity pools on multiple DEXs, which are migrated to use Hedera Token Service using contracts derived from Uniswap V2, including Pangolin Hedera, SaucerSwap and HeliSwap.

Hedera: The attacker attacks the smart contract service code of the main network and transfers the user token to his account

Analysis based on this information:

Recently, Hedera Hashgraph, a decentralized public network, came out with details regarding a security breach that it had suffered. According to the announcement made on March 10th, an attacker had targeted the smart contract service code of Hedera’s main network. The objective of the attacker was to transfer the Hedera Token service token that was being held by some user accounts to his own account.

The attacker’s main objective was to make use of accounts as liquidity pools on multiple decentralized exchanges (DEXs). To achieve this, the attacker had used contracts derived from Uniswap V2, which had been migrated to use Hedera Token Service. These DEXs that were targeted by the attacker include Pangolin Hedera, SaucerSwap, and HeliSwap. This allowed the attacker to take control of the Hedera Token Service liquidity pools for these DEXs.

The attack, which was still ongoing at the time of the announcement, had already resulted in significant losses to some users of these DEXs. It is unclear at this point how much money was stolen, but Hedera has stated that it has taken measures to mitigate the impact of the attack. The network has already initiated a technical recovery process that involves replacing the affected smart contract and redeploying it on the main network. The process is intended to ensure that user funds are safe and to prevent any further exploitation of the smart contract service.

This security breach is a significant blow to Hedera’s reputation as a reliable and secure decentralized public network. The sophisticated nature of the attack, which targeted the smart contract service code, shows the need for continued investment in security measures to protect digital assets. This incident highlights the importance of a robust security infrastructure that incorporates mechanisms to identify and report security breaches in real-time.

To sum up, Hedera’s security breach serves as a warning to all players in the crypto industry to invest in robust security measures. It also underlines the need for transparent and timely communication regarding such incidents to mitigate the impact on users of decentralized networks.

In conclusion, the three most important things to take away from this announcement are that Hedera’s smart contract service was attacked, the attacker transferred Hedera Tokens to their account, and that the attack targeted DEXs.

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