The LiFi bridging protocol was exploited for over $8 million on Tuesday. The attacker targeted specific accounts. The cryptocurrency platform urged users not to interact with any LiFi-enabled applications. The prevalence of cyberattacks remains a dominant threat to the industry. Therefore, participants need to remain constantly vigilant to avoid becoming a victim.
Cryptocurrency project LiFi Protocol hacked!
LiFi Protocol confirmed the attack in a post on X and urged users not to interact with any LiFi-powered applications. According to the report, the hacker targeted accounts with a manual “infinite approval” setting. In this context, the platform said, “Please do not interact with any LiFi enabled apps for now! We are investigating a possible exploit. If you have not set infinite approval, you are not at risk.”
The platform urges users to revoke all confirmations for three addresses and offers to help upon request.
“We urge all users to immediately use our secluded revocation website; four more security breaches have been detected,” the protocol updated. The report also stated that all user funds that interact with LiFi protocols are at risk. In the latest update, LiFi made the following statement:
A smart contract vulnerability that was discovered earlier today has been contained and the affected smart contract facet has been disabled. There is no further risk to users at this time. The only affected wallet was set to infinite approval and represented only a very small number of users. We are collaborating with relevant law enforcement agencies and relevant third parties, including security teams from industry, to trace the funds. We will publish a more detailed post-mortem as soon as possible.
Security firms report over $8 million in losses
Several security firms, including Cyvers and De.Fi Antivirus Web 3, highlighted the attack. According to Cyvers, the exploit affects Circle’s USD Coin (USDC), Tether’s USDT stablecoin on the Ethereum (ETH) mainnet, and Arbitrum (ARB) confirmations. In this context, Cyvers said, “Check your wallet for suspicious activity on these networks. If you have interacted with the LiFi protocol on either Blockchain, take immediate action to secure your assets,” Cyvers said.
On the other hand, De.Fi Antivirus Web 3 revealed that the exploiter made a series of suspicious withdrawals from protocol contracts. It also exposed the wallet holding the $8 million loot, which showed different currencies in Ethereum and Arbitrum contracts.
As you have been following on Kriptokoin.com, cyberattacks underscore how risky the decentralized finance (DeFi) space can be. Exploiters are exploiting system vulnerabilities to steal user funds. Just a few weeks ago, The Open Network (TON) made headlines for its vulnerability to phishing attacks.
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