Infini Neobank was hacked, resulting in a loss of $49.5M USDC due to a compromised private key. The attacker converted assets to ETH and transferred them to a new wallet.
Details of the Infini Neobank Hack
In the early hours of February 24, blockchain security firm CertiK detected unauthorized transactions from an Infini Neobank contract on Ethereum. The attacker, using a compromised private key, gained access to an Infini-related wallet and withdrew $49.5 million USDC. According to Lookonchain, the hacker quickly converted the stolen USDC into 49.5 million DAI before purchasing 17,696 ETH. The funds were then transferred to a newly created wallet, making it difficult to track or recover them.
Promise of Full Compensation
Despite the severity of the hack, Infini’s co-founder, Christian (@Christianeth), reassured affected users via social media, promising full reimbursement. He stated that the company has enough financial reserves to cover the losses, urging users not to panic. His message was echoed by another co-founder, @0xsexybanana, who confirmed Infini’s commitment to compensating victims. However, Infini’s official channels have yet to issue a formal statement on the incident, leaving uncertainty about the exact timeline for recovery efforts.
Wave of Crypto Bank Hacks Raises Concerns
The Infini Neobank hack adds to a series of major security breaches in 2024, including Bybit’s $1.4 billion hack just days earlier. In Bybit’s case, hackers manipulated smart contract logic to drain the exchange’s cold wallet. The industry’s response has been swift, with firms tightening security and working to recover stolen assets. As Infini positions itself as a bridge between traditional banking and crypto finance, this incident underscores the risks associated with neobanks operating in the digital asset space. With rapid user growth and increasing transaction volumes, ensuring strong private key security and smart contract protections has become more critical than ever.
The Infini Neobank hack highlights serious issues in crypto platform security management and the need to improve protective measures for users and financial institutions.
