Infini Labs, a crypto-focused neobank, has filed a lawsuit accusing an engineer of embezzling nearly $50 million via a smart contract vulnerability.
The Accusations
Infini Labs accuses engineer Chen Shanxuan of withholding 'super admin' rights to steal approximately $49.5 million in USDC. The lawsuit was filed by Infini’s subsidiary BP SG Investment Holding Limited. It is alleged that Chen, as the lead developer, used his privileged position to embezzle funds.
Motivation and Consequences
According to the lawsuit documents, Chen was a heavy gambler with significant debts. Infini Labs has sought to freeze Chen’s assets and demanded further transaction details. Earlier, Infini Labs attempted to negotiate with the alleged 'hacker', offering legal immunity in return for the funds.
Expert Opinions
Jeremiah O’Connor, CTO of Trugard, described the exploit as a 'textbook example of an insider attack' in the Web3 space. He cautioned about the dangers of centralized authority in DeFi. 'When financial desperation meets unrestricted control, the results are almost always catastrophic,' he warned.
The case against Infini Labs’ engineer highlights the importance of decentralized safeguards and caution in managing crypto assets.
