Odaily Planet Daily reports: According to Hifi Finance, Hifi DAO has 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 urges all users with collateral deposited in the Hifi Protocol to withdraw immediately and specifically requests the controllers of two related addresses to withdraw WETH from the protocol. Hifi Finance acknowledges full responsibility for the core team’s failure to detect and prevent this governance attack in a timely manner. The team has already taken measures to significantly limit the scope of the attack; final losses have not yet been determined but are preliminarily estimated at approximately $20,000. The DAO is well-capitalized and will compensate all affected parties; 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.
Hifi DAO Suffers Governance Takeover Attack; Preliminary Loss Estimated at $20,000
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Summary
Hifi DAO has fallen victim to a governance takeover attack, resulting in HIFI token holders losing control over the protocol and smart contracts. Hifi Finance has urged users to withdraw their assets immediately and requested that specific address controllers remove WETH. The team accepts full responsibility and estimates losses at approximately $20,000. Despite the incident, the DAO remains solvent and will compensate affected users. Liquidity has been withdrawn from DEXs, and RWA-backed debts will now be managed directly by the core team. The protocol will suspend new debt issuance, and a full report will be published. Such events may cause shifts in the Fear & Greed Index for alternative cryptocurrencies.
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