From beincrypto by Lockridge Okoth

Stablecoin bank Infini suffered a massive security breach on Monday, just days after the attack on the Bybit exchange.

This new breach has raised additional concerns about security in the crypto space.

Infini Exploit Drains $49.5 Million Linked to Insider Admin Rights

According to blockchain security firm Beosin Alert, the Infini contract was exploited, leading to the loss of approximately $49.5 million. Reportedly, attackers swiftly converted the stolen USDC stablecoin into 17,696 ETH before transferring the funds to an external wallet.

“It seems that the stablecoin bank Infni was hacked and 49.5M USDC was stolen. The hacker swapped 49.5M USDC for 49.5M DAI and bought 17,696 ETH. The 17,696 ETH was transferred to a new wallet,” Lookonchain corroborated.

Reportedly, the attacker was originally involved in developing the contract for the Infini project. However, after delivering the project, they secretly retained admin rights. Over 100 days later, the attacker funded their address through the Tornado Cash mixing service. They sent a small ETH transaction for gas and exploited the contract, draining all funds from the platform.

Following the incident, Infini founder Christian Li committed to active investigations. He also articulated that user withdrawals remain unaffected, emphasizing full compensation even in the worst-case scenario.

“I said that I was always ready for the first disaster, but I didn’t expect that I would be the one to run into trouble right after bybit…I was negligent when transferring the authority before. It is ultimately my responsibility. This has sounded the alarm. There is no problem with liquidity. Full compensation can be paid and the funds are being traced,” Christian explained.

Christian also reported that the bad actor’s computer was located and reported to the police. The incident marks yet another high-profile attack in decentralized finance (DeFi). It has reignited concerns over security vulnerabilities within the sector. This follows closely on the heels of the devastating attack on Bybit, which resulted in a $1.46 billion loss.

Bybit Sees Over $6.7 Billion Bank Run After Friday Hack

While Bybit’s handling of the situation received praise, the hack triggered a panic-induced mass exodus of funds. Data on Arkham indicates outflows of over $6.7 billion.