Cryptocurrency Aggregator Drained of $8 Million in Security Breach
![Cryptocurrency Aggregator Drained of $8 Million in Security Breach](https://coinspress.com/wp-content/uploads/2023/01/hacker-code-1-915x600.webp)
Blockchain security firm PeckShield has reported a significant breach at Berlin-based cryptocurrency trading aggregator LI.FI, resulting in the loss of $8 million.
The startup issued a cautionary statement on X social media platform, advising users to avoid interacting with LI.FI-powered applications temporarily while they investigate the exploit.
The security incident appears to have impacted users who set infinite approvals manually, according to LI.FI. As a precautionary measure, DEX trading platform Oku Trade has disabled LI.FI from its Oku Bridge. This is not the first time LI.FI has faced security issues; in March 2022, approximately $600,000 worth of tokens were stolen from 29 wallets in a similar incident.
READ MORE: Bitconnect Promoter Convicted for Unlicensed Financial Advice
PeckShield noted that the current exploit resembles the one from 2022, suggesting LI.FI may not have adequately addressed previous vulnerabilities. The earlier breach involved exploiting the protocol’s pre-bridge swapping feature, allowing the attacker to steal funds with a single transaction.
LI.FI attributed the latest breach to delays in completing its audit and acknowledged the urgent need to enhance its security measures. Despite securing $5.5 million in funding in July 2022 from investors like Coinbase and Lattice Capital, LI.FI is now facing scrutiny over its security practices. In May 2023, the startup launched a decentralized exchange aggregator and token bridge as part of its expansion efforts.