Avici Security Breach Drains $653K, Wipes 27% from AVICI Token

Solana-based neobank Avici suffered a significant security breach, resulting in an estimated $653,000 being drained from customer card collateral vaults. The incident sent the AVICI token plummeting by 27%, dropping to around $0.30.

The attack targeted escrow accounts used to back Avici's USDC-based Visa credit cards. According to on-chain researchers, the attacker may have used a crafted signature bundle to gain administrative control over the escrow accounts before withdrawing the funds.

Avici has acknowledged the issue but has not yet provided a detailed post-mortem explanation for how the attack occurred or whether other vaults remain at risk. The company's documentation indicates that only a user's wallet should be able to withdraw funds from an escrow contract after card spending has been deducted, suggesting potential flaws in the underlying contracts.

The security incident has raised concerns about smart contract security and the risks associated with self-custody claims. As the investigation continues, users are advised to treat remaining collateral as potentially exposed until Avici secures the affected contracts and determines the full scope of the incident.