Li Finance protocol loses $600,000 in latest DeFi exploit
The Li Finance swap aggregator has experienced a smart contract exploit leading to the loss of around $600,000 from 29 users’ wallets.
The exploit took place at 2:51 am UTC on March 20. The attacker was able to extract varying amounts of 10 different tokens from wallets that had given “infinite approval” to the Li Finance protocol. Among the stolen tokens were USD Coin (USDC), Polygon (MATIC), Rocket Pool (RPL), Gnosis (GNO), Tether (USDT), Metaverse Index (MVI), Audius (AUDIO), AAVE (AAVE), Jarvis Reward Token (JRT), and DAI (DAI).
TLDR:• ~$600K have been stolen from 29 wallets• User don’t have to do anything• Bug has been fixed and is already deployedhttps://t.co/fqOxJxDrZs
When the team learned about the exploit 12 hours later at 2:15 pm UTC, it shut down all swapping functions on the platform in order to prevent any further losses.
By 2:50 am UTC on March 21, the team had issued a post mortem detailing the events of the exploit. The team said that the attacker swapped the stolen tokens for a total of about 205 Ether (ETH) valued at roughly $600,000. At the time of writing, the stolen ETH had yet to be moved from the attacker’s wallet. LiFi also assured users that the bug has been identified and patched.
Today’s LiFi hack happed because its internal swap() function would call out to any address using whatever message the attacker passed in. This allowed the attacker to have the contract transferFrom() out the funds from anyone who had approved the contract. pic.twitter.com/NA3xW7ReUd
Of the 29 wallets that were hit in this attack, 25 have been reimbursed from treasury funds for their losses. Those 25 wallets only accounted for $80,000, or 13% of the total value lost. The owners of the remaining four wallets that lost a
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