Hedera Network Suffers $5.25M Sauce Protocol Hack

The Hedera Network suffered a significant security breach after hackers exploited the DeFi lending platform Sauce Protocol, draining over $5.25 million from the network.

The attack began with the hacker depositing collateral into Sauce Protocol and manipulating its price oracle to borrow nearly 6.6 million USDC and 35 million HBAR before swapping the stolen tokens on SaucerSwap.

The attacker then used LayerZero to bridge the stolen funds from the Hedera Network to Ethereum, making it more difficult to recover the assets.

The HBAR coin price fell by nearly 3.5% following the news, with investors fearing a more serious breach despite the attack targeting Sauce Protocol rather than the Hedera network itself.