Infini’s Security Breach: A $49.5 Million Heist
Infini, a prepaid payments card issuer renowned for offering interest on deposited dollar stablecoins, has recently found itself in a precarious situation after suffering a significant security breach. The company reported a staggering loss of nearly all the value locked in its wallets, amounting to an estimated $49.5 million, according to blockchain security firm Peckshield.
This exploit surfaced just days after Infini celebrated reaching $50 million in total value locked, highlighting the vulnerability that now looms over the Hong Kong-based neobank. The timing of this incident is particularly alarming, occurring shortly after Bybit, the second-largest cryptocurrency exchange by trading volume, experienced its own severe security breach, where hackers absconded with nearly $1.5 billion from its ether cold wallet in what has been termed the largest exploit in crypto history.
In a bold move, Infini communicated directly with the hacker through a blockchain transaction, stating, “We are closely monitoring the address involved and are prepared to take immediate action to freeze any stolen funds if necessary.” The company even went as far as to propose a settlement, offering the hacker 20% of the stolen assets in exchange for the return of the funds. They set a 48-hour deadline for the perpetrator to facilitate a resolution, warning that failure to respond would compel them to escalate their investigation in partnership with law enforcement authorities.
According to insights from Cyvers, the breach was made possible due to a lapse in security protocols. It was revealed that a developer involved in establishing Infini’s smart contract retained admin rights, which were exploited more than three months later to siphon off funds to a wallet that was subsequently funded through the cryptocurrency mixer Tornado Cash.
Taking full responsibility for this incident, Infini’s founder, Christian Li, has vowed to cover the entire loss personally, emphasizing his commitment to rectify the situation and restore trust in the neobank’s operations.
