Stay Safe: Hedera Temporarily Closes Wallet And App Access!

Key Points:

• Hedera announced that it will be turning off access to most of its services as it investigates irregularities in its smart contracts.
• Hedera gave little information about the nature of the issue, independent blockchain researcher Ignas reported that the issue is related to the decompiling process of smart contracts and specifically affects the Hedera Token Service (HTS).
• HBAR was down 6.2% over 24 hours.

Hedera announced that it will be turning off access to most of its services as it investigates irregularities in its smart contracts.

The project will be blocking wallet, app access and will turn off network proxies on its mainnet. This means that wallets, decentralized exchanges, and centralized exchanges will not be usable. The project stated that its mainnet remains operational and is reaching consensus on new blocks, but the network will be similarly inaccessible to most users. The decision was made as an abundance of caution for users, but it has attracted criticism from users who have questioned the project’s commitment to decentralization.

The issue was confirmed by Heder on March 9, and the bridge service Hashport also paused its services to help contain the issue. While HBAR gave little information about the nature of the issue, independent blockchain researcher Ignas reported that the issue is related to the decompiling process of smart contracts and specifically affects the Hedera Token Service (HTS). This means that liquidity provider (LP) tokens and wrapped tokens are affected. Hedera has not stated whether any funds have been lost or stolen.

Justin Trollip, CEO of Pangolin Exchange, cited by Ignas as the original source of that information, said that Hedera projects such as Pangolin, SaucerSwap, Heliswap, and others are also at risk. Trollip advised users to “get [their] funds out now” ⁠— advice that was later repeated by Pangolin in an official capacity.

HBAR was down 6.2% over 24 hours. Nevertheless, it has performed better than Bitcoin, which was down 7.4% over 24 hours. The decision to turn off access to most services is a result of the smart contract issues experienced earlier by the project. While the decision was made to protect users, it has attracted criticism for Hedera’s lack of commitment to decentralization. The project has not provided any timeline for when access to the services will be restored.

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