Hifi DAO Suffers Governance Attack, Team Estimates Losses of Approximately $20,000 and Urges Users to Withdraw Collateral Immediately

BlockBeats news, October 31 - Hifi Finance disclosed in a post that Hifi DAO has suffered a governance takeover attack, and HIFI token holders have effectively lost control over the protocol, governance smart contracts, and the HIFI token supply. The team reminds all users with collateral deposited in Hifi Protocol to withdraw immediately, and specifically requests the controllers of two relevant addresses to withdraw WETH from the protocol.

Hifi Finance stated that the core team failed to promptly detect and prevent this governance attack and takes full responsibility for it. The team has now taken measures to significantly limit the scope of the attack's impact. The final loss has not yet been determined, with an initial estimate of approximately $20,000. The DAO has sufficient funds and will compensate all affected parties; the DAO's own liquidity has been permanently withdrawn from decentralized trading platforms.

In addition, all outstanding debts collateralized by RWA will be directly managed by the core team and will no longer be processed through the compromised smart contracts. The relevant debts remain adequately capitalized and are expected to be fully repaid on the original maturity date of March 26, 2027. The protocol will not issue new debt. The team said a full investigation report will be published later.