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. It added that steps have already been taken to sharply limit the scope of the damage. Final losses have not yet been determined, though the initial estimate is about $20,000. According to the team, the DAO has enough funds to compensate all affected parties, and its own liquidity has been permanently removed from decentralized exchanges. Hifi Finance also said all outstanding debt backed by RWA collateral will now be managed directly by the core team rather than through the compromised smart contracts, with full repayment still expected by the original maturity date of March 26, 2027.
Hifi Finance said Hifi DAO has been hit by a governance takeover attack, leaving HIFI token holders effectively unable to control the protocol, its governance smart contracts, or the HIFI token supply.
The team urged all users with collateral in Hifi Protocol to withdraw immediately. It also specifically asked the controllers of two related addresses to remove WETH from the protocol.
Team says it is responsible and has moved to contain the damage
According to Hifi Finance, the core team failed to detect and stop the governance attack in time and is taking full responsibility. The team said it has already taken steps to sharply limit the scope of the impact.
Final losses have not been determined. The initial estimate is about $20,000. The DAO has sufficient funds to compensate all affected parties, and the DAO's own liquidity has been permanently withdrawn from decentralized exchanges.
RWA-backed debt will be handled directly by the core team
Hifi Finance also said all outstanding debt backed by RWA collateral will be managed directly by the core team rather than through the compromised smart contracts.
The related debt remains fully capitalized and is 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 a full investigation report will be released later.
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