• Li Finance, a swap broker, was subject to a smart contract attack that resulted in a loss of $600,000.
• The attack drained varying amounts of 10 different tokens from 29 users’ wallets.
• 25 of the 29 wallets which were attacked in the attack received reimbursements from the Treasury Funds for their losses.

DeFi’s latest exploit saw $600,000.0 stolen from Li Finance Protocol. The swap aggregator, Li Finance, has experienced a smart contract exploit that led to a total loss of approximately $600,000 from 29 users’ wallets.

It occurred Sunday morning at 2:51 AM UTC. The attacker was able to penetrate Li Finance protocol and gain “infinite approval”. As a result, the hacker was able to drain varying amounts of 10 different tokens from users’ wallets.

The stolen tokens included (USDC), Rocket Pool(NASDAQ:)) (RPL), Polygon [MATIC], Gnosis [GNO], Metaverse Index (MVI), Tetner (“USDT”), Audius (“AUDIO”) Jarvis Reward Tokens (JRT), AAVE—AAVE), and DAI („DAI“).

The team discovered the flaw at 2:15 PM, twelve hours later. They shut down the swapping functionality on the platform to avoid any more losses.

The team released a post mortem Monday at 2.50 AM UTC. Team members stated that the attacker swapped stolen tokens for approximately 205 Ether, which was valued at $600,000. The stolen ETH had yet to be moved from the attacker’s wallet.

Users were also informed by the LiFi team that they had fixed the bug.

25 out of 29 wallets affected by the attack were reimbursed with treasury money. But, only $80,000 of the loss was recouped by the treasury funds to the 25 wallets. This is 13%. We reached out to the owners of four other wallets and discussed a plan for compensation. They would be compensated by being angel investors in the protocol.

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