Hifi Finance said Hifi DAO has suffered a governance takeover attack that left HIFI token holders unable to control the protocol, its governance smart contracts, or the HIFI token supply. The team urged all users with collateral deposited in Hifi Protocol to withdraw immediately and specifically asked the controllers of two related addresses to remove WETH from the protocol. Hifi Finance said the core team failed to detect and stop the attack in time and is taking full responsibility. The final loss has not been determined, but the initial estimate is about $20,000. The project said it has already taken steps to sharply limit the scope of the incident. It also said the DAO has sufficient funds to compensate all affected parties and that its own liquidity has been permanently removed from decentralized exchanges. In addition, all outstanding debt backed by RWA collateral will now be managed directly by the core team rather than through the compromised smart contracts. Hifi Finance said those debts remain fully capitalized and are expected to be repaid in full on the original maturity date of March 26, 2027. The protocol will not issue any new debt, and a full investigation report will be released later.
According to Odaily, Hifi Finance said Hifi DAO has been hit by a governance takeover attack, leaving HIFI token holders unable to control the protocol, its governance smart contracts, or the HIFI token supply.
Users told to withdraw collateral immediately
The team urged all users with collateral deposited in Hifi Protocol to withdraw immediately. It also specifically asked the controllers of two related addresses to remove WETH from the protocol.
Initial loss estimated at about $20,000
Hifi Finance said the core team failed to detect and stop the governance attack in time and is taking full responsibility. The team added that it has already taken measures to sharply limit the scope of the incident's impact. Final losses have not yet been determined, but the initial estimate is about $20,000.
DAO says affected parties will be compensated
Hifi Finance said the DAO has sufficient funds to compensate all affected parties. It also said the DAO's own liquidity has been permanently withdrawn from decentralized exchanges.
RWA-backed debt moved under direct team management
The project said all outstanding debt backed by RWA collateral will now be managed directly by the core team rather than through the compromised smart contracts. Those debts remain backed by sufficient capital and are expected to be repaid in full on the original maturity date of March 26, 2027. The protocol will not issue any new debt. The team said it will publish a full investigation report later.
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