The protocol reimbursed 25 out of the total 29 affected wallets, offering to transform the lost funds of the remaining users into an “angel investment.”
Li Finance (LiFi) became the latest victim of cyber-attackers, with nearly $600,000 worth of cryptocurrencies stolen from 29 wallets. Shortly after, the team published a post explaining the issue and promised to reimburse all affected users.
LiFi Falls Victim to a DeFi Hack
The blockchain protocol explained that the attack occurred on March 20, 2022, when a hacker exploited LiFi’s smart contract (specifically its swapping feature), making users who gave infinite approval vulnerable. As soon as the project identified the attack, it alerted its partners and investors via a Twitter post.
We are investigating a potential exploit on https://t.co/nlZEnqOyQz smart contract:
All swap methods have been disabled until we can lock them down and ensure they are safe for use. We will update you as we find out more.
— LI.FI – Any-2-Any Swaps (