Li.Fi protocol is under attack, $10M drained so far

Li.Fi Protocol, an API for Ethereum Virtual Machine (EVM) and Solana (SOL) swaps and bridging, is under attack as over $10 million in cryptocurrencies have already been drained.

According to Cyvers Alerts, the team’s systems raised suspicious transactions on Li.Fi protocol involving a specific contract address .

Cyvers recommended that users revoke their approvals for the suspected address: 0x1231deb6f5749ef6ce6943a275a1d3e7486f4eae

Speaking with Cointelegraph, Meir Dolev, co-founder and chief technology officer at Cyvers, explained that protocols must be vigilant:

“Hackers can exploit these approvals to drain both assets stored in the contracts and funds in the connected wallets of users.”

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LiFi protocol warning

In an X post on July 16, Li.Fi protocol warned its community that users should not interact with Li.Fi-powered applications until further notice.

The team explained that they were investigating the potential exploit and clarified that users who “did not set infinite approval” were not at risk.

For users that manually set infinite approvals, the Li.Fi protocol team stated that the following addresses should be revoked:

• 0x1231deb6f5749ef6ce6943a275a1d3e7486f4eae
• 0x341e94069f53234fE6DabeF707aD424830525715
• 0xDE1E598b81620773454588B85D6b5D4eEC32573e
• 0x24ca98fB6972F5eE05f0dB00595c7f68D9FaFd68

Related: Lazarus is moving millions from $305M DMM Bitcoin hack — ZachXBT

$10 million drained so far

According to Cyvers Alerts, approximately $10 million in cryptocurrency holdings have been drained so far, and the drain is now also affecting the Arbitrum blockchain.

Dolev told Cointelegraph that “this incident underscores the risks inherent in granting wallet approvals to smart contracts.”

In an X post  updating the community on the situation, Cyvers again recommended users revoke the 0x1231deb6f5749ef6ce6943a275a1d3e7486f4eae address to prevent further losses.

Related: Dough Finance loses $1.8M in flash loan attack

From drains to flash loan attacks

Decentralized finance (DeFi) protocol Dough Finance was also recently under attack on July 12 after becoming the victim of a $1.8 million flash loan attack .

Cyvers reported on this incident, explaining that the attacker funded the attack through the zero-knowledge (ZK) protocol Railgun and swapped the stolen USD Coin ( USDC ) for Ether ( ETH ).

According to Web3 security provider Olympix, the exploit, which accrued 608 ETH and is valued at around $1.8 million, resulted from unvalidated call data with the "ConnectorDeleverageParaswap.”

Magazine: Crypto-Sec: Evolve Bank suffers data breach, Turbo Toad enthusiast loses $3.6K