Hifi DAO Suffers Governance Attack; Team Estimates $20K Loss and Urges Users to Withdraw Collateral

According to Huoxing Finance, on October 31, Hifi Finance disclosed that Hifi DAO suffered a governance takeover attack, rendering HIFI token holders effectively unable to control the protocol, governance smart contracts, or the HIFI token supply. The team urged all users with collateral deposited in the Hifi Protocol to withdraw immediately and specifically requested the controllers of two related addresses to withdraw WETH from the protocol. Hifi Finance acknowledged that the core team failed to detect and prevent this governance attack in a timely manner and accepts full responsibility. The team has already implemented measures to significantly contain the scope of the attack; the final losses have not yet been determined but are preliminarily estimated at approximately $20,000. The DAO has sufficient funds to compensate all affected parties, and its own liquidity has been permanently removed from decentralized exchanges. Additionally, all outstanding debts collateralized by RWA will now be directly managed by the core team and will no longer be processed through the compromised smart contracts. These debts remain adequately capitalized and are expected to be repaid in full on their original maturity date of March 26, 2027; no new debt will be issued by the protocol. The team plans to release a full investigation report in the coming days.