Crypto Start-up Loses $8 Million to Hackers

## Crypto Start-up LI.FI Falls Victim to Another $8 Million Hack

Crypto start-up LI.FI, based in Berlin, has once again been targeted by hackers, resulting in a significant loss of $8 million. The breach was confirmed by blockchain security firm PeckShield, raising concerns about the security measures employed by the trading aggregator.

The breach was revealed in a post on X social media platform, where LI.FI warned users to refrain from interacting with any applications powered by their protocol for the time being. The company’s team is currently investigating the exploit to better understand how it occurred and the extent of the damage.

According to the latest information, users who did not set infinite approvals are not at risk, with only those who manually set infinite approvals appearing to be affected. In response to the incident, DEX trading platform Oku Trade has temporarily disabled LI.FI from its Oku Bridge.

This is not the first time LI.FI has faced a security breach. In a previous incident in March 2022, approximately $600,000 worth of various tokens were stolen from 29 wallets. Peckshield reported that the latest bug exploited mirrors the previous incident, indicating a lack of improvement in the protocol’s security measures.

LI.FI acknowledged that the attack was facilitated by their failure to complete an audit in a timely manner. The company admitted that their security protocols need a significant overhaul to prevent such breaches in the future.

LI.FI had previously secured $5.5 million in funding from prominent entities like Coinbase and Lattice Capital in July 2022. By May 2023, it had introduced a decentralized exchange aggregator alongside a token bridge. However, the recent security breach highlights the need for stronger measures to protect users’ assets and maintain trust in the platform.

As the crypto industry continues to evolve, security remains a critical aspect that companies must prioritize to safeguard user funds and prevent potential exploits. LI.FI’s experience serves as a cautionary tale for other crypto start-ups, underscoring the importance of robust security protocols and continuous monitoring to mitigate risks in the digital asset space.