Defi Protocol LI.FI Struck by $8M Exploit

As a seasoned cybersecurity analyst with extensive experience in the blockchain and DeFi space, I find the recent $8 million exploit on LI.FI protocol deeply concerning. Having closely monitored the DeFi landscape for years, I’ve seen firsthand how these decentralized platforms can be vulnerable to sophisticated attacks.

The decentralized finance (DeFi) platform LI.FI protocol has suffered an approximately $8 million breach as a result of questionable transactions visible on the blockchain.

For the time being, kindly abstain from engaging with any apps that utilize LI.FI technology. We’re currently looking into a suspected vulnerability. If you haven’t enabled infinite approval, there’s no need for concern.

LI.FI is a protocol that allows users to trade across various blockchains, venues and bridges.

Crypto security firm Decurity said that the exploit involves the LI.FI bridge.

In a message on platform X, Security identified the source of the issue as the potential for unpredictable inputs from users during transactions using the `depositToGasZipERC20` function in the GasZipFacet contract, which was recently deployed five days ago.

In the first half of 2024, a report published by Immunefi estimated that a staggering $473 million in cryptocurrency was stolen through hacks, exploits, and rug pulls.