$1.1M Hack on Avici Crypto Neobank Causes Token Price Plunge

A recent hack targeting Avici's crypto neobank resulted in losses of approximately $1.1 million, causing its token to plummet nearly 50% in value.

The vulnerability exploited an older version of Rain's smart contract, allowing the attacker to drain funds from multiple programs on Solana, including Avici users who suffered losses of about $500,800.

Rain's monitoring system detected the issue and upgraded all affected contracts, but not before the hacker made off with a significant sum. The stolen stablecoins were then laundered through Tornado Cash.

The incident has raised concerns about the security of self-custodial wallets in crypto neobanks, where users' funds are transferred to third-party smart contracts for spending purposes.