Cryptocurrency Aggregator Drained of $8 Million in Security Breach
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.
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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.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
