Mysterious Happenings with HBAR, Was ETH Betrayed? Lawsuit Rocks Crypto Exchange, and Major Bank Faces Closure!

Hedera Hashgraph’s official account posted that attackers had exploited the smart contract service code of the Hedera mainnet to transfer Hedera token service tokens held by victims accounts to their own accounts. The attacker targeted accounts used on multiple decentralized exchanges, including Pangolin, Sausage Swap, and Heli Swap. The Hedera community worked together to investigate the attack and prevent the attacker from stealing more tokens. Hedera turned off mainnet proxies, and the team is working on a solution to remove this vulnerability. The native coin HBAR remains safe, and community sentiment toward HBAR remains positive. In other news, New York is suing KuCoin for alleged securities violations, and’s future is in jeopardy amid Euro banking woes.

Hedera Network Breach: Attackers Exploit Smart Contract Service Code

Hey guys, what’s up? It’s Dusty here, and welcome back to another crypto video. I’ve got some bad news for HBAR – not the craziest of bad news, but bad news nonetheless. As usual, I’ll try to provide you with the most important information related to cryptocurrencies. So, if you appreciate it, make sure you press that like button.

This is what Hedera’s official account posted today: attackers exploited the Smart Contract Service Code of the Hedera mainnet to transfer Hedera Token Service tokens held by victims’ accounts to their own accounts. The attackers targeted accounts used as liquidity pools on multiple Dexes that use Uniswap’s V2 derived contract code ported over to use the Hedera Token Service, including Pangolin, Sausage Swap, and Heli Swap.

When the attackers moved tokens obtained through these attacks over the Hashboard network bridge, the bridge operators detected the activity and took swift action to disable it. The Hedera community, including all these different guys, worked together to investigate the attack and to prevent the attacker from being able to steal more tokens. Hedera turned off Main at Proxies, which removed user access to the mainnet.

The team has identified the root cause of the issue and is working on a solution. Once the solution is ready, the Hedera council members will sign transactions to approve the deployment of updated code onto the mainnet to remove this vulnerability. At which point, the mainnet proxies will be turned back on, and normal activity will resume.

Can Anyone Explain Further?

Somebody Hans HBAR asked, “I wish I understood more; can anyone explain it to me further? How is this possible, and Hedera security seemed unbreakable, so what’s going on there?”

You have to understand that whenever these protocols operate in an ecosystem of sorts, they work together with different parties. In this case, it’s the Ethereum Virtual Machine that was attacked to make things Ethereum compatible and exploited, not a Hedera network or the coin by itself. That’s why the native coin HBAR is still safe, and everybody having the native coin has really got nothing to worry about. Only smart contract apps have been affected, and the mainnet is still working, but only proxies were switched off.

What’s Going on in the Crypto Space?

In other news, New York is suing KuCoin, and apparently, within that lawsuit, even though they’ve not officially gotten any files just yet, they’re claiming that Ethereum is going to be a security. Kraken is opening a crypto bank, whereas all these other banks are shutting down because of the pressure. Talking about crypto banks, struggles to provide Europe banking services to EEA users amid the digital asset crisis.

In terms of XRP or Bitcoin price, we attempted a little breakout over XRP throughout the week, but we didn’t really move anywhere just quite yet in regards to Bitcoin in a similar fashion.

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