Users of the Li Finance protocol experienced damages of roughly $600,000. Some of them were compensated when a hacker discovered a flaw in the project’s smart contract.
The hacker discovered the attack at 2:15 pm UTC 12 hours later, the team immediately shut down all swapping operations on the platform in order to prevent any more losses from occurring.
By 2:50 a.m. UTC on Monday, the team had released a postmortem documenting the events leading up to the attack.
According to the team, the attacker exchanged the stolen tokens for a total of around 205 ether (ETH), which was worth approximately $60,000.
It was not clear if the stolen Ethereum had been transferred from the attacker’s wallet as of the time of writing.
Users were also told by LiFi that the problem had been detected and fixed as well. He was successful in exploiting a smart contract on the LiFi network, resulting in the theft of $600,000 in cryptocurrency from 29 user wallets.
Exploits in the DeFi domain have become increasingly prevalent as the ecosystem has grown in size.
An exploit of a weakness in the DeFi protocol’s smart contract caused users of the protocol and swap aggregator Li Finance to lose $600,000 as a result of the hack. As a result, the hacker was successful in stealing cash from 29 distinct user wallets.
Details of the hack
The heist occurred on Sunday, March 20, according to the police. According to reports, the hacker was successful in obtaining money from the wallet by granting “unlimited permission” to the Li Finance protocol.
The hacker was successful in stealing money from ten different cryptocurrency tokens.
The government has repaid the losses of 25 out of the 29 wallets that were targeted in this assault by using treasury money. The total value of the 25 wallets was only $80,000, or 13% of the total amount of money stolen.
The owners of the other four wallets, which lost a total of $517,000, have been approached and given a proposal in which their losses would be honored as angel investors in the protocol, in exchange for their cooperation.
They would get LiFi tokens under the same conditions as other angel investors, in an amount equal to the amount of money they had lost from each of their respective wallets. This would also assist in reducing the amount of harm done to the platform’s bank account.