- During an exploit on Tuesday, about $12 million worth of USDC, USDT, and DAI stablecoins as well as other cryptocurrencies were lost by 153 wallets linked to LI.FI.
- The team identified a single human error in the deployment process oversight as the cause of the vulnerability.
The well-known cross-chain blockchain protocol LI.FI, which was compromised on Tuesday, has released an incident report demonstrating how a single human mistake during a smart contract update made the protocol open to malicious actors. It is estimated that 153 wallets were impacted, and losses of DAI, USDC, and USDT stablecoins were close to $12 million.
Our team successfully disabled the susceptible feature across all chains by activating the incident response strategy as soon as they discovered the security problem. The team stated in the report released on Thursday that this move eliminated the threat and stopped any additional illegal access.
The team continues by stating that they were able to stop the threat and stop “any further unauthorized access” by promptly identifying the security vulnerability, turning on an incident response plan, and deactivating the problematic code.
As per the report, a single human error in managing the deployment process resulted in a vulnerability pertaining to transaction validation through the protocol’s interaction with a shared LibSwap code library utilized by several decentralized exchanges and other DeFi protocols.
The fundamental cause, according to security firm Decurity, seemed to be a problem with a smart contract update for LI.FI.
According to LI.FI, helping with the recovery of customer funds is currently its top priority. To that end, the company is working with web3 security companies and law enforcement agencies.
Please fill out the following form if you are a wallet holder who is impacted so that we can contact you directly. We sincerely appreciate your cooperation. The group composed a text.
The LI.FI protocol, which is built into many wallets, enables users to trade between different blockchains. The protocol experienced a similar vulnerability that cost PeckShield, a security firm, $600,000 in 2022.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
