the Li.Fi protocol recently experienced a significant breach, resulting in the theft of over $8 million in digital assets. The breach, which was first detected by Cyvers, a blockchain security platform.
According to Cyvers, the hackers exploited a specific contract address, allowing them to drain funds from unsuspecting users. The attack was particularly devastating, as it targeted users who had manually set infinite approvals for the affected contracts.
Li.Fi has since confirmed the hack and has taken steps to minimize the damage. The protocol’s team has set up a dedicated portal for users to revoke their approvals and has recommended that all users temporarily revoke their approvals until the investigation is complete.
The hackers, who have already laundered a significant portion of the stolen funds through TornadoCash, have also been contacted by the Minterest team, which has offered a 10% bug bounty if the stolen assets are returned.
In an effort to resolve the issue amicably, Minterest has reached out to the hacker through on-chain messaging, offering a 10% bounty for the return of the stolen funds. However, if the hacker refuses to cooperate, Minterest has vowed to pursue legal action.
It seems that the vulnerability primarily affected users who had manually set infinite approvals for certain contract addresses. The Li.Fi team has since identified four exploited contracts and urged users to revoke their approvals for these addresses as a precautionary measure.
If you’re a Li.Fi user, it’s crucial to take the following steps to protect your funds:
Revoke your approvals: Visit the Li.Fi revoking website and temporarily revoke your approvals for the affected contracts.
Check your contract settings: Review your contract settings to ensure that you haven't set infinite approvals for any of the affected contracts.
Monitor your funds: Keep a close eye on your cryptocurrency balances and report any suspicious activity to the authorities.LI.FI is a blockchain platform that streamlines the process of transferring assets across numerous blockchain ecosystems using a single API. It acts as a bridge, connecting DeFi infrastructure with the application layer.
