As a researcher with several years of experience in the blockchain and cryptocurrency space, I have seen my fair share of security breaches and exploits. The recent news about LI.FI being drained of $8 million is disheartening, to say the least. Having read through the details of this latest incident and compared it with their previous one in March 2022, it appears that not much has changed.
Based on the report from cybersecurity company PeckShield, it is stated that LI.FI, a cryptocurrency trading platform based in Berlin, has suffered a loss of approximately $8 million.
On X social media site, the new cryptocurrency company issued a cautionary statement to its followers, advising them to avoid using apps supported by LI.FI at present.
The project’s team is currently in the process of investigating a potential exploit.
Users without manually set infinite approvals are not impacted by this issue.
DEX trading platform Oku Trade announced that it has temporarily disabled LI.FI from Oku Bridge.
As a crypto investor, I’ve unfortunately had to deal with the aftermath of a security breach at LI.FI before. Back in March 2022, hackers managed to steal around $600,000 worth of USDC, MATIC, AAVE, and other tokens from 29 wallets of users, including mine.
According to PeckShield’s assessment, the issue at hand is remarkably similar to past occurrences, implying that the project may have missed an opportunity for growth and improvement from earlier experiences.
In 2022, I unfortunately fell victim to a sophisticated hacker who exploited the prebridge swapping feature of a crypto project and made off with hundreds of thousands of dollars in a single transaction. The attack began with a legitimate swap of a modest amount, but then the hacker directly interacted with several token contracts through multiple calls, bypassing the protocol’s intended security measures.
The start-up explained that the cyberattack occurred because it hadn’t been able to complete the audit on time. They emphasized that their security protocols needed significant enhancement in response.
In July 2022, LI.FI obtained funding totalling $5.5 million from investors such as Coinbase and Lattice Capital.
In May 2023, it introduced a decentralized exchange aggregator as well as a token bridge.
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2024-07-16 17:54