LI.FI Hack Compensation Will Be Launched After $10 Million Breach

Key Points:

• LI.FI protocol announces compensation plan after $10 million hack.

LI.FI hack compensation plan announced for users affected by a recent security breach leaking over $10 million in digital currencies.

LI.FI Hack Compensation Plan Announced

LI.FI, a cross-chain bridge protocol, has announced a voluntary compensation plan for users recently affected by a hack. The company informs that from tomorrow, those users will be contacted about the compensation and how to fill in the form when joining the compensation.

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Details of the July 16 Security Breach

On July 16, LI.FI suffered a security breach, leaking over $10 million in digital currencies. The LI.FI team then stated that the exploit had been stopped and the affected smart contract component had been disabled.

LI.FI guaranteed users there was no longer any risk and said the team was also in close contact with law enforcement and industry security teams to track down stolen money. Security firm Cyvers said its systems identified suspicious transactions related to one contract address.

As Cyvers says, the loss was due to $10 million drained from the crypto holdings, which affected the Arbitrum blockchain. The event showed the risks of allowing wallet approvals for smart contracts.

In a follow-up post to the community, Cyvers repeated the plea to revoke the address 0x1231deb6f5749ef6ce6943a275a1d3e7486f4eae to avert more losses.