Essential Insights
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Major Security Breach: Stablecoin Bank Infini experienced a significant hack, losing over $49 million in USDC, attributed to an ex-developer exploiting retained administrative privileges.
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Prompt Detection: The breach was first reported by CertiK on February 24, with on-chain tracking confirming the conversion of stolen funds into DAI and subsequent transactions to acquire ETH.
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Controversial Oversight: Infini’s founder Christian Li acknowledged past oversights in transferring control and took responsibility, while another co-founder assured customers of compensation for losses.
- Wider Crypto Concerns: Infini’s hack adds to a troubling trend, with recent high-profile attacks like bybit’s $1.5 billion exploit by suspected North Korean hackers highlighting ongoing vulnerabilities in the crypto market.
Infini Suffers $49M Exploit in Stablecoin Heist
Stablecoin Bank Infini has experienced a significant security breach. Hackers stole over $49 million in USDC, as confirmed by on-chain tracking platforms. The attack exploited retained administrative privileges, allowing the breach to occur.
CertiK first detected suspicious activity on February 24. They reported unauthorized fund transfers from an Infini-related contract on Ethereum. Lookonchain later confirmed that the hacker converted the stolen funds into 49.5 million DAI, an Ethereum-based stablecoin. The attacker then acquired 17,696 ETH, moving it to a new wallet.
Cybersecurity firm Cyvers Alerts identified the hacker as a former developer of Infini. This developer had maintained secret administrative control after the project’s completion. Over 100 days later, they used Tornado Cash to fund their wallet and execute the exploit. Additionally, PeckShield Alert suggested that a private key leak might have contributed to the breach. However, Infini founder Christian Li denied any compromise of his private key. He admitted previous oversights in control transfer, taking full responsibility for the incident.
Co-founder Christine reassured customers that Infini would compensate for the losses. She stated that the company has ample resources to cover the stolen funds. Founded in 2024, Infini connects traditional banking with cryptocurrency, offering stablecoin transactions and yield-generating accounts.
The Infini hack highlights ongoing security challenges in the crypto sector. Just days earlier, crypto exchange Bybit suffered a $1.5 billion exploit, marking one of the largest thefts in industry history. CEO Ben Zhou confirmed that the attack led to the loss of most of Bybit’s ETH holdings. The stolen assets quickly vanished from the exchange’s wallet, prompting Bybit to launch a $140 million bounty for recovery.
As technology continues to develop, these incidents spotlight the urgent need for enhanced security measures in digital finance. The crypto industry must prioritize transparency and secure practices to protect both users and their assets.
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