Hifi DAO Estimates Loss at About $20,000 After Governance Takeover Attack

Hifi DAO estimates it lost about $20,000 in a governance takeover attack, though the final loss has not been determined. According to Odaily, Hifi Finance disclosed that HIFI token holders effectively no longer control the protocol, its governance smart contracts or the HIFI token supply. The team urged users with collateral in Hifi Protocol to withdraw it immediately and specifically asked the controllers of two addresses to remove their WETH from the protocol. Hifi Finance said its core team takes full responsibility for failing to identify and stop the attack in time. It has taken steps to limit the attack’s impact. The DAO has sufficient funds to compensate all affected users, the team said. DAO-owned liquidity has been permanently withdrawn from decentralized exchanges. The core team will directly manage outstanding debt backed by real-world assets (RWA), rather than process it through the compromised smart contracts. The debt remains adequately capitalized and is expected to be repaid in full on its scheduled due date, March 26, 2027. The protocol will issue no new debt, and the team said it will publish a full investigation report.