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What we know about the $49.5M Infini exploit so far

  • Infini neobank hacked for $49.5M USDC, swapped for 17,696 ETH
  • The attacker exploited retained admin privileges in Infini’s smart contract
  • Infini’s founder has promised full compensation, citing negligence in authority transfer

Infini, a Hong Kong-based stablecoin neobank blending crypto and traditional finance, has become the latest hack victim, resulting in the loss of $49.5 million in USD Coin (USDC).

The hack, which was reported earlier today, was first flagged by blockchain security firm CertiK at 3:18 AM UTC. The result of the exploit has sent shockwaves through the decentralized finance (DeFi) community, underscoring persistent vulnerabilities in the crypto space, especially following the recent $1.4 billion Bybit hack on February 21, 2025.

The Infini attack

The attack targeted an Infini-related smart contract on the Ethereum blockchain, specifically the address 0x9A79f4105A4e1A050Ba0b42F25351D394fA7E1DC.

According to security analysts from CertiK, Cyvers, Blocksec, and PeckShield, a hacker gained unauthorized access by exploiting retained administrative privileges within the contract. The attacker, operating from the address 0xc49b5e5b9da66b9126c1a62e9761e6b2147de3e1, had initially developed the smart contract for Infini but retained control, unbeknownst to the project.

This insider access allowed the hacker to manipulate the contract’s settings, draining $49.5 million in USDC from what is believed to be the Morpho MEV Capital Usual USDC Vault.

Following the theft, the hacker swiftly converted the stolen USDC into Dai (DAI) and then purchased 17,696 Ethereum (ETH), valued at around $49 million at the time.

The funds were then transferred to a new wallet, 0xfcc8…6e49, and split across multiple addresses, with initial funding traced to Tornado Cash, a privacy tool often used to obscure cryptocurrency transactions. However, at the time of reporting, the ETH remained unmixed, indicating ongoing efforts to trace the hacker’s movements.

Infini’s response

Infini, which launched in 2024 as a digital-only neobank offering stablecoin transactions, crypto card services, and high-yield accounts, has issued an official statement acknowledging the security breach. It states that “all transfers, deposits, withdrawals, and payments remain in normal usage and working status.”

Infini’s founder, Christian Li, took full responsibility for the exploit in a post on X, clarifying that the breach didn’t result from a private key leak but rather his negligence in transferring authority from the developer to the project.

“My personal private key has not been leaked, so there is no need to worry too much. I was negligent when transferring the authority before. It is ultimately my responsibility. This has sounded the alarm… There is no problem with liquidity. Full compensation can be paid, and the funds are being traced,” he wrote.

Despite this reassurance, some on-chain analyses, including from PeckShield, suggest a potential private key compromise, adding complexity to the investigation.

Impact of the exploit

The exploit has raised serious questions about private key management, smart contract security, and the risks of insider threats in DeFi platforms.

Infini, which has experienced meteoric growth, boasting a 500% monthly increase in active users since its inception, particularly after launching its crypto card campaigns, now faces a critical test of its resilience. The neobank’s high-yield products, designed to attract liquidity, inadvertently provided the conditions for the exploit, amplifying the financial impact.

This incident follows closely on the heels of the Bybit exchange hack, which saw a staggering $1.4 billion drained through manipulated smart contract logic.

The similarity in tactics, splitting and mixing ETH, has led on-chain investigator ZachXBT to speculate that the Lazarus hacker group, known for such methods, might be involved, though no direct link to Infini’s attacker has been confirmed.

The rapid succession of these high-profile breaches has reignited calls for robust security protocols across centralized and decentralized crypto platforms.

Interestingly, the influx of stolen ETH into the market has paradoxically catalyzed a small rally, pushing Ethereum’s price above $2,800 for the first time in weeks as exchanges scrambled to replenish reserves.

However, the Infini incident has also sparked concerns about potential money laundering or hostile regime financing, given the use of Tornado Cash and the scale of the theft.

The post What we know about the $49.5M Infini exploit so far appeared first on CoinJournal.

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The SEC mulls over XRP ETF applications as interest rises

  • The SEC has received six XRP ETF applications over the last several weeks as interest in traditional crypto investment vehicles continues rising
  • Coinshares sent a proposal for XRP and Litecoin ETFs while Grayscale sent one for XRP amid several proposals for Solana ETFs

The SEC has received no less than six applications for XRP exchange-traded funds (ETFs) from major issuers like Canary Capital, Grayscale, Bitwise, WisdomTree, 21Shares, and Coinshares.

The latest application, Grayscale, began the 21-day comment period on Friday where members of the public can submit feedback on the proposed ETF.

While this happens, five Solana ETF applications from 21Shares, Bitwise, Grayscale, VanEck, and Canary await a decision.

The rise of interest in ETFs

The recent swarm of ETF applications is emblematic of a shift in the regulatory landscape to a more friendly environment. This shift began at the twilight of former Securities and Exchange Commission (SEC) chair Gary Gensler’s tenure with the approval of the Bitcoin and Ethereum ETFs in 2024.

Now that Mark Uyeda, a pro-crypto official, is in office, combined with the most pro-crypto Congress the US has ever seen, the regulatory landscape is expected to be friendlier. Furthermore, Ripple Labs’ win against Gensler’s SEC has also placed it in a favourable growth position.

President Donald Trump signed an executive order to create a sovereign wealth fund that will include cryptocurrencies. While Bitcoin is expected to be on the list, recent developments may place XRP in the fund as well.

In January, Trump met with Brad Garlinghouse, CEO of Ripple, who is pushing for the sovereign wealth fund to contain more than one cryptocurrency, ideally XRP as well.

An XRP ETF approval could cement the crypto as a candidate for the reserve.

Ripple is the third largest crypto by market cap and trades at $2.48 as of publishing.

Litecoin ETF approval

Despite this, Bloomberg ETF analysts James Seyffart and Eric Balchunas believe that a Litecoin ETF has a 90% chance of being approved in 2025.

In a post on X, the pair mainly focused on Dogecoin, Litecoin, Solana, and XRP. In their view, Dogecoin ETF has a 75% chance of approval, a Solana ETF has a 70% chance, and an XRP ETF has a 65% approval rating.

Seyffart added that it’s unlikely the market will see an XRP ETF until the whole Ripple/XRP/SEC case is settled, finished, or has some sort of outcome.

“The SEC needs to untangle that mess,” he said.

The post The SEC mulls over XRP ETF applications as interest rises appeared first on CoinJournal.