LI.FI, a decentralized protocol for bridging assets, has suffered an $8 million hack. The attack affected multichain liquidity provider LI.FI, which facilitates cross-chain swaps for Jumper, as reported by blockchain research firm Cyvers on Tuesday.
Analysts revealed that the hacker drained over $8 million, mostly in stablecoins, converting some to Ethereum. Users were urged to revoke their approvals and avoid interactions with the protocol. LI.FI stated that only those with infinite approvals were impacted.
This follows a previous hack in March 2022, where $600,000 worth of tokens were stolen due to a smart contract loophole. Founded in 2021, LI.FI raised $17.5 million in a Series A fundraise in April 2023.
Such breaches highlight the need for robust security in decentralized finance, emphasizing the long-term importance of securing cross-chain protocols.
