Li.Fi Crypto Protocol Suspected to Have Lost Nearly $9 Million in Hack
A recent exploit has led to a significant loss of funds for the cross-chain DeFi protocol Li.Fi. Here are the key details about the incident:
– Li.Fi suspected to have lost up to $9 million in cryptocurrencies in the exploit
– Wallet linked to the hack held $8.7 million in digital assets, including $6 million in Ethereum
– Exploit targeted users who manually adjusted the settings on their Li.Fi accounts
– Investigations ongoing to determine the extent of the exploit and its impact on users
Li.Fi Responds to the Security Breach
After the exploit was detected, Li.Fi immediately took the following steps to address the situation:
– Urged users to revoke permissions via revoke.cash
– Identified four additional security breaches
– Introduced a secluded revoke website for users to take action
– Users advised to check for compromises on their accounts via scan.li.fi
Decurity’s Analysis of the Exploit
Crypto security firm Decurity shed light on the root cause of the exploit:
– Vulnerability likely exploited via the Li.Fi bridge
– Issue with the GasZipFacet’s `depositToGasZipERC20()` function deployed 5 days prior
– Decurity highlighted the potential for arbitrary calls with user-controlled data
Li.Fi’s History of Security Challenges
Li.Fi has faced security issues in the past, resulting in significant losses:
– Previous bug in the protocol’s swapping feature led to $600,000 in losses in 2022
– Li.Fi conducted a post-mortem analysis of the attack to address vulnerabilities
Hot Take: Stay Informed and Secure Your Crypto Assets
As a crypto investor, it is crucial to stay informed about security incidents like the Li.Fi exploit. Take proactive steps to secure your assets and monitor your accounts regularly to prevent unauthorized access.
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