Stablecoin bank Infini has fallen victim to a major security breach, losing $49.5 million worth of crypto, linked to insider access that occurred a few days after Bybit suffered a $1.46 billion hack, followed by a mass withdrawal of $6.7 billion.
Insider Exploit of Infini Drains Funds
Blockchain security firm Beosin Alert confirmed that an Infini operative manipulated its smart contract, leading to a loss of approximately $49.5 million. The attacker, reportedly, a former developer of the project, had secretly retained admin rights after handing the contract over. Over 100 days later, the attacker used Tornado Cash to fund their address before initiating the attack.
The hacker swiftly swapped stolen USDC stablecoin for 17,696 ETH just before transferring the funds to an external wallet. Blockchain investigator Lookonchain confirmed the details that the attacker converted USDC to DAI before purchasing ETH.
Following the breach, Infini founder Christian Li admitted responsibility and claimed that an oversight in the handing over of administrative authority had occurred. He assured that withdrawals that are available to users are not affected and full compensation for the losses incurred will be covered.
“There is no problem with liquidity. Full compensation can be paid, and the funds are being traced,” Li stated. He also reported that the hacker’s computer had been identified and alerted to the authorities.
Bybit’s $1.46 Billion Hack Sparks Industry Debate
Following Bybit’s $1.46 billion hack, this recent event has caused panic across the cryptocurrency market and has resulted in a $6.7 billion withdrawal wave in the market. The incident reignited discussions on exchange security, with some analysts drawing comparisons to past collapses like FTX.
Despite the outflows, industry experts praised Bybit’s crisis management system. Unlike FTX, which had issues with mismanagement and fraud, Bybit’s team was able to respond quickly in addressing the matters at hand, ensuring that withdrawals were processed without any significant delays.
Infini and Bybit attacks have raised a call to action within the DeFi and centralized exchange industries. Industry leaders continue to debate rollback mechanisms, hacker bounties, and stronger safeguards to prevent future exploits.
Read also: Circle Mints Another 250M USDC—Total Hits $8B in 2025
