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In a shocking turn of events, the DeFi platform Infini experienced a significant security breach, resulting in the theft of $49.5 million in USDC.
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This incident closely follows the Bybit exchange hack, which saw a staggering $1.46 billion drained and raised urgent calls for enhanced security measures in the crypto space.
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According to sources at COINOTAG, “The rapid succession of these hacks emphasizes the pressing need for robust security protocols in centralized exchanges.”
Infini suffers a major security breach with $49.5 million stolen, following the Bybit hack. Will this lead to stronger security measures in crypto trading?
Infini Exploit Drains $49.5 Million Linked to Insider Admin Rights
Blockchain security analytics firm Beosin Alert reports that a sophisticated attack on Infini’s contract allowed a rogue actor to siphon off approximately $49.5 million. The assailant swiftly converted the stolen USDC into roughly 17,696 ETH, subsequently transferring these funds to an external wallet.
“It seems that the stablecoin bank Infini 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,” noted Lookonchain, corroborating the magnitude of the theft.
Interestingly, the antagonist in this incident once contributed to the development of the Infini project. They retained undisclosed admin privileges after project delivery, waiting over 100 days before exploiting the system to drain the funds. For cover, the assailant utilized the Tornado Cash mixing service, concealing their digital tracks.
Infini’s founder, Christian Li, has since pledged to manage the aftermath of this crisis diligently. He reassured users that withdrawals would continue without disruption, emphasizing that all clients would see full compensation.
“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,” explained Christian, reflecting on his accountability.
The efforts to locate the perpetrator have already begun, with authorities informed of the situation. This incident joins a growing list of high-profile DeFi attacks, reigniting discussions about vulnerabilities within the sector and its regulatory landscape.
Bybit Sees Over $6.7 Billion Bank Run After Friday Hack
Bybit’s recent security breach, which led to a hack worth $1.46 billion, triggered a wave of withdrawals unprecedented in the platform’s history, with data revealing outflows exceeding $6.7 billion.
The immediate shift of assets from Bybit amid fears of vulnerability showcases a growing skepticism around centralized exchange security, especially in a landscape riddled with prior collapses and exploits.
Crypto developer Makickal expressed urgent concerns, stating, “Wakes up. Reads Bybit hack. Falls out of bed and starts a frantic morning of moving funds and closing positions. Terrible day. This is war, but war looks different in 2025…”
Despite the alarming withdrawals, experts are careful to distinguish the current crisis from past exchange failures. As one investor noted, Bybit’s reactive stance appears commendable compared to the inadequate responses seen in the past.
“There’s a big difference in how you’re handling this compared to FTX, Mt. Gox, and the likes. The reason why I put my money on Bybit is due to a professional team that aims for accountability not attention,” said a user identified as Astronomer.
Investor responses highlighted Bybit’s efficient communication strategy, crediting the firm for maintaining transparency during crises. They distinctively managed to process all withdrawal requests, much unlike the response from FTX, which contributed to widespread investor mistrust.
Conclusion
The recent incidents involving Infini and Bybit have amplified the conversation surrounding security and trust within the cryptocurrency landscape. Stakeholders must prioritize robust security measures while reinforcing user confidence to navigate these turbulent waters. Every failure serves as a critical learning opportunity, underscoring the need for vigilance and innovation in protecting digital assets.
