Hedera Network Investigates Possible Exploit, Wallets and Apps Shut Down

• Hedera Network has blocked access to its wallet and app due to technical irregularities.
• SaucerSwap, a DEX on the Hedera Network, has encouraged users to withdraw their liquidity from the platform.
• The cause is possibly an exploit in its smart contracts, though no information about stolen funds has been disclosed yet.

Hedera Network Blocks Access To Wallet & App

The Hedera Network announced that it will turn off all network proxies on its mainnet as it investigates irregularities discovered in its smart contracts. This means that users cannot access or use wallets, decentralized exchanges, decentralized applications, and centralized exchanges on the network. Despite this action, the mainnet continues to remain operational and is reaching consensus on new blocks.

SaucerSwap Encourages Users To Withdraw Liquidity

As a result of these developments, SaucerSwap – a decentralized exchange (DEX) on the Hedera Network – has encouraged its users to withdraw their liquidity from the platform before things can be resolved.

Reason For Decision

Hedera stated that they are taking this action in “an abundance of caution” for its users but have not disclosed whether any funds have been compromised or stolen. This decision was met with criticism by some community members who questioned the project’s commitment to complete decentralization since Hedera maintained control of all proxies at launch.

Possible Exploit?

On March 9th Hedera stated that an ongoing exploit was hitting them and impacting all decentralized applications using their Token Service (HTS). Ignas further elaborated that this issue was related to decompiling processes within smart contracts and advised people to get their funds out now as a precautionary measure. As a result of this news Hashport paused services in order to contain the issue.


Though access and proxies will be re-enabled once issues are resolved, currently users are unable to access any wallets or apps associated with the Hedera Network while investigations continue into what could potentially be an exploit in their smart contracts. In light of these events SaucerSwap has recommended withdrawing any liquidity from their platform until further notice is given by Hedera themselves