ChainCatcher report: Hifi Finance has disclosed that the Hifi DAO has suffered a governance takeover attack, leaving 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 takes full responsibility for the core team's failure to promptly detect and prevent this governance attack. The team has already implemented measures to significantly limit 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 The DAO has sufficient funds to compensate all affected parties, and its own liquidity has been permanently withdrawn from decentralized exchanges.
In addition, all outstanding debt collateralized by RWA will be directly managed by the core team and will no longer be handled through the compromised smart contract. The related debt remains adequately capitalized and is expected to be repaid in full on its original maturity date of March 26, 2027; no new debt will be issued under the protocol. The team plans to release a comprehensive investigation report in the coming days.
Hifi DAO Suffers Governance Takeover Attack; Team Estimates $20K Loss
ChaincatcherShare
Summary
Hifi Finance announced a governance takeover attack on Hifi DAO, leaving HIFI token holders without control over the protocol or token supply. The team urged immediate withdrawal of collateral and requested that controllers of specific addresses remove WETH. Preliminary losses are estimated at $20,000, with compensation promised. A protocol update will transfer RWA-backed debt management to the core team, and no new debts will be issued. The incident underscores the need for continuous security enhancements and new token listings to strengthen the ecosystem.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.