LI.FI, a decentralized protocol for bridging assets across different networks, has reportedly suffered a hacker attack, leading to losses amounting to $8 million as of press time.

The multichain liquidity provider, which facilitates cross-chain swaps for the Jumper crypto exchange, was targeted in this attack. Analysts at blockchain research firm Cyvers reported that the hacker drained over $8 million, primarily in stablecoins, and has already converted some of the stolen USD Coin (USDC) and Tether (USDT) to Ethereum (ETH).

@lifiprotocol, Our system has raised suspicious transactions involving your protocols. We recommend users to revoke their approvals for: 0x1231deb6f5749ef6ce6943a275a1d3e7486f4eae. More than $8M have been drained so far from users and mostly stablecoins!

The analysts urged LI.FI’s users to revoke their approvals for the protocol and avoid any interactions with it amid the ongoing attack. LI.FI responded on social media, indicating that “only users that have manually set infinite approvals seem to be affected.”

This incident is not the first for LI.FI. In March 2022, an unknown attacker exploited a loophole in the protocol’s smart contract, resulting in the loss of $600,000 worth of various tokens. A post-mortem update from the LI.FI team revealed that the vulnerability was in the swapping feature of the LI.FI smart contract, granting the attacker total control over the pre-bridge swap feature.

Founded in 2021 by Max Klenk and Philipp Zentner, the Berlin-headquartered liquidity hub raised $17.5 million in a Series A funding round co-led by CoinFund and Superscrypt in April 2023. Other investors such as Circle, Factor, Perridon, Theta Capital, Three Point Capital, and Abra also participated in the funding.

Stay informed with the latest news in the cryptocurrency world here on Global Crypto News.

Post Views: 4