LI.FI, a cross-chain bridge protocol, has announced a voluntary compensation plan for users affected by a recent hack. The company will start contacting users about the compensation process from tomorrow. The security breach, which occurred on July 16, resulted in the loss of over $10 million in digital currencies.
The LI.FI team quickly acted to stop the exploit and disable the affected smart contract component. They assured users there was no longer any risk. The team is working closely with law enforcement and industry security teams to track down the stolen funds.
Security firm Cyvers identified suspicious transactions related to one contract address, leading to the discovery of the breach. The loss primarily impacted the Arbitrum blockchain. This incident highlighted the risks associated with allowing wallet approvals for smart contracts.
Cyvers has urged users to revoke the address 0x1231deb6f5749ef6ce6943a275a1d3e7486f4eae to prevent further losses. The LI.FI team is committed to maintaining transparency and has promised to keep the community updated on the progress of the investigation and compensation process.
