Infini, a stablecoin bank, fell victim to a major security breach on Monday, shortly after the recent attack on Bybit exchange, putting the spotlight on security concerns within the crypto realm.
The breach, dubbed the Infini Exploit, resulted in a staggering loss of around $49.5 million, with attackers converting pilfered USDC stablecoin into 17,696 ETH before moving the funds to an external wallet. Allegedly, the attacker, previously involved in developing Infini's contract, maintained admin rights covertly after project completion. The attacker utilized the Tornado Cash mixing service to fund their address following over 100 days, executing an exploit to drain the platform’s funds.
In the aftermath, Infini’s founder, Christian Li, assured ongoing investigations and pledged full compensation for affected users, even highlighting guaranteed refunds in the worst-case scenario. Despite the setback, Li emphasized there were no liquidity issues, with efforts underway to trace and retrieve the lost funds.
Additionally, following the breach, the perpetrator's computer was identified and reported to law enforcement, marking another high-profile incident in the DeFi sector, sparking renewed concerns over security lapses. This event follows the recent Bybit attack, leading to a massive $1.46 billion fallout.
While Bybit’s response to the hack garnered praise, a panic-induced fund exodus from the platform ensued, amounting to over $6.7 billion in outflows, indicative of growing unease over exchange security and previous exchange collapses. Crypto developer Makickal likened the scenario to an economic conflict and flagged the Lazarus Group from North Korea as a significant player in large-scale crypto thefts.
Amidst the chaos, experts noted distinctions in handling the crisis, lauding Bybit for its professional approach and transparency, diverging from past exchange fiascos like FTX. The swift reactions and communication from Bybit garnered positive feedback, showcasing resilience and crisis management skills, calming some investor anxieties.
As developments in the aftermath of these breaches continue, the impact on crypto security and investor trust remains at the forefront, urging further scrutiny and enhanced protective measures in the evolving digital finance landscape.