New York, Monday, July 22, 2024 – Cryptocurrency exchange platform Li.Fi incurred a loss of over $10 million in cryptocurrencies on July 16 following an attack on its smart contracts, reports said.
Li.Fi platform facilitates swaps and transfers across blockchains.
Li.Fi said it had since mitigated the attack and disabled the compromised smart contract, ensuring no further risk to users.
However, the company previously warned its community to avoid Li.Fi-powered applications until the situation was resolved.
Users with specific wallet settings were also advised to take action to prevent further losses.
Li.Fi said it was cooperating with law enforcement and security experts to recover the stolen funds and investigate the attack.
The incident highlights the ongoing vulnerabilities in decentralized finance (DeFi) protocols, following a recent flash loan attack on another DeFi platform, Dough Finance.
Both Li.Fi and Cyvers, a security provider who alerted Li.Fi to the suspicious activity, have maintained communication with the community throughout the incident, it is learnt.
While Li.Fi assures users who followed standard security practices are safe, the attack underscores the importance of vigilance in the DeFi space.
