LI.FI Hack Compensation Will Be Launched After $10 Million Breach

LI.FI Hack Compensation Will Be Launched After $10 Million BreachLI.FI Hack Compensation Plan Announced

LI.FI, a cross-chain bridge protocol, has announced a voluntary compensation plan for users recently affected by a hack. The company informs that from tomorrow, those users will be contacted about the compensation and how to fill in the form when joining the compensation.

Important update for affected users:

Our team will start contacting users starting tomorrow with details on a voluntary compensation scheme we are currently working on.

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Details of the July 16 Security Breach

On July 16, LI.FI suffered a security breach, leaking over $10 million in digital currencies. The LI.FI team then stated that the exploit had been stopped and the affected smart contract component had been disabled.

A smart contract exploit earlier today has been contained and the affected smart contract facet disabled.

There is currently no further risk to users.

The only wallets affected were set to infinite approvals, and represented only a very small number of users.

LI.FI guaranteed users there was no longer any risk and said the team was also in close contact with law enforcement and industry security teams to track down stolen money. Security firm Cyvers said its systems identified suspicious transactions related to one contract address.

As Cyvers says, the loss was due to $10 million drained from the crypto holdings, which affected the Arbitrum blockchain. The event showed the risks of allowing wallet approvals for smart contracts.