Market Analysis Report (21 Mar 2022)

Decentralized Finance (DeFi) protocol Li Finance, an exchange aggregator, has experienced a smart contract exploit that led to the loss of around $600,000 from the wallets of 29 users.

The exploit saw a hacker extract varying amounts of 10 tokens from wallets that gave the Li Finance protocol “infinite approval.” The stolen tokens included USDC, MATIC, USDT, AUDIO, AAVE, DAI, and MVI.

Li Finance reacted to the hack by shutting down all swapping functions on the platform to prevent further losses. The protocol’s team detailed that the attacker swapped the stolen tokens for 205 Ether (ETH) valued at around $600,000.

The project’s team has since reimbursed 25 of the affected 29 wallets with funds from its treasury. These wallets accounted for around $80,000, or 13% of the value lost. The owners of the remaining wallets were contacted and offered a deal to compensate them by honoring their losses as angel investors in the protocol.

Li Finance has offered the hacker a bug bounty in return for the stolen funds.

Source