TechFlow news, LI.FI has released a security incident report revealing that an "individual human error" during a smart contract update led to the protocol being exploited by malicious actors. The incident is estimated to have affected 153 wallets, resulting in the loss of nearly $12 million worth of USDC, USDT, and DAI stablecoins.
Upon detecting the security vulnerability, the LI.FI team immediately activated its incident response plan and successfully disabled all vulnerable on-chain components. The vulnerability stemmed from an issue in transaction validation, related to how the protocol interacted with the shared LibSwap codebase used across multiple decentralized exchanges and other DeFi protocols, due to an "individual human error during supervised deployment."
The LI.FI team stated it will conduct further investigation into the incident and implement measures to prevent similar issues from occurring in the future.
