Josh O"Sullivan10 hours agoLi.Fi protocol attacked, $10M drainedThe Li.Fi protocol experienced a security breach when hackers exploited a specific contract address, resulting in the loss of over $8 million in cryptocurrencies. The attack has since been mitigated.125571 Total views167 Total sharesListen to article 0:00Breaking newsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksUpdate (July 16, 16:20 UTC): This article has been updated to reflect that the attack on Li.Fi has since been mitigated, and the protocol was functioning normally.
Li.Fi, an API for Ethereum Virtual Machine and Solana swaps and bridging, was attacked on July 16, and over $10 million in cryptocurrencies was drained.
According to Cyvers, the team’s systems alerted to suspicious transactions on Li.Fi involving a specific contract address.
Cyvers recommended users revoke their approvals for the suspected address: 0x1231deb6f5749ef6ce6943a275a1d3e7486f4eae
Speaking with Cointelegraph, Meir Dolev, co-founder and chief technology officer at Cyvers, explained that protocols must be vigilant:“Hackers can exploit these approvals to drain both assets stored in the contracts and funds in the connected wallets of users.”Source: Cyvers
Related: Filipino artists hacked to promote XRP scamLi.Fi warning
In an X post on July 16, Li.Fi warned its community that users should not interact with Li.Fi-powered applications until further notice.
When the attack was underway, the team explained that it was investigating the exploit and clarified that users who “did not set infinite approval” were not at risk.
For users who manually set infinite approvals, the Li.Fi team stated that the following addresses should be revoked:0x1231deb6f5749ef6ce6943a275a1d3e7486f4eae0x341e94069f53234fE6DabeF707aD4248305257150xDE1E598b81620773454588B85D6b5D4eEC32573e0x24ca98fB6972F5eE05f0dB00595c7f68D9FaFd68
At 11:44 am ET (15:44 UTC), Li.Fi updated its users in an X post that the smart contract vulnerability had been mitigated. “There is currently no further risk to users,” the post stated. “The only wallets affected were set to infinite approvals, and represented only a very small number of users."
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According to Cyvers, approximately $10 million in cryptocurrency holdings were drained, which also affected the Arbitrum blockchain.
Dolev told Cointelegraph that “this incident underscores the risks inherent in granting wallet approvals to smart contracts.”
In an X post updating the community on the situation, Cyvers again recommended users revoke the 0x1231deb6f5749ef6ce6943a275a1d3e7486f4eae address to prevent further losses.
Related:Dough Finance loses $1.8M in flash loan attackFrom drains to flash loan attacks
Decentralized finance protocol Dough Finance was also recently under attack on July 12, becoming the victim of a $1.8 million flash loan attack.
Cyvers reported on the incident, explaining that the attacker funded the attack through the zero-knowledge protocol Railgun and swapped the stolen USD Coin (USDC) for Ether (ETH).
According to Web3 security provider Olympix, the exploit, which accrued 608 ETH and is valued at around $1.8 million, resulted from unvalidated call data with the “ConnectorDeleverageParaswap.”
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