Hedera is blocking access to the majority of services due to a potential exploit, as stated in a tweet on March 9.
Hedera said that it will turn off network proxies on its mainnet as it investigates irregularities in its smart contracts. Wallets, decentralized exchanges, decentralized apps, and centralized exchanges won’t function as a result of this move.
The project claimed that its mainnet is still up and running and that fresh blocks are being agreed upon. Instead, the majority of users are also unable to access the network.
After the problem is fixed, the project claimed it will permit access and proxies again. According to Hedera, this move is being taken “out of an abundance of caution for users.” Whether any money has been misplaced or stolen has not been disclosed by the project.
Users have already criticized the choice and questioned the project’s dedication to decentralization. Hedera’s apparent solitary use of proxies shows that only a small number of people are in charge of the network.
When the proxies were started in 2020, Hedera had complete control over them. Yet, it also stated that it intended to give council members control in the future.
Heder acknowledged having problems with smart contracts earlier on March 9. Hashport, a bridge provider, also suspended operations in an effort to address the problem.
Hedera didn’t provide much details regarding the nature of the problem. Ignas, an independent blockchain researcher, claimed that the problem is peculiar to the Hedera Token Service and is related to the decompiling of smart contracts.
This implies that wrapped tokens and liquidity provider (LP) tokens are also impacted. Ignas cited Justin Trollip, CEO of Pangolin Exchange, as the original source of that information.
Hedera ventures like Pangolin, SaucerSwap, Heliswap, and others, according to Trollip, are also in danger. Trollip advised users to “get [their] funds out now” — advice that was later repeated by Pangolin in an official capacity.
