LiFi Finance
Last changed 2026-10-10 · Score recalculated — Rescored under Scoring v2, the published formula (avoid.net/scoring): 32 → 58. Problems weighed by who is responsible: incidents the subject suffered −6.4, concerns that are not fraud −6.4, problems around the subject, caused by others −2.4; legitimacy credit long-running +8. Version history →
Why this score
| Every page starts at | 65 |
| Concerns that are not fraud | -6.4 |
| Incidents it suffered (e.g. hacks) | -6.4 |
| Problems around it, caused by others | -2.4 |
| Long-running | +8 |
| Sum | 58 |
Score: 58/100 (kept between 0 and 100)
How scoring works →Summary
LI.FI is a Berlin-based cross-chain bridge and DEX aggregation protocol founded in 2021 by Philipp Zentner and Max Klenk. The protocol has suffered two significant smart contract exploits — a $600,000 loss in March 2022 and an $11.6 million loss in July 2024 — both stemming from the same class of arbitrary-call vulnerability, prompting criticism from security researchers that lessons were not learned. Separately, blockchain investigator ZachXBT alleged in June 2025 that North Korean (DPRK) actors accounted for an estimated 15–25% of the protocol's volume during May 2025, using LI.FI to launder funds from the Bybit hack.
Connected Entities
9 entities · 60 linked investigations- Phantom Wallet→mentioned with→Ethereum(70%)
- ZachXBT→mentioned with→Ethereum(70%)
- ZachXBT→mentioned with→Kraken(60%)
- Phantom Wallet→mentioned with→ZachXBT(60%)
- ZachXBT→mentioned with→Binance(60%)
- ZachXBT→mentioned with→Bybit(70%)
- Binance→mentioned with→Ethereum(65%)
- LiFi Finance→mentioned with→LiFi Protocol(80%)
- Arbitrum→mentioned with→Binance(65%)
- LiFi Protocol→mentioned with→Arbitrum(65%)
- + 16 more
Connected Through
8 shared actors · 585 investigationsDistinct actors this investigation shares with others — holders, traders, and named parties. Shared infrastructure (exchanges, pools) is excluded.
- □Ethereumorganization
- □ZachXBTorganization
- □Binanceorganization
- □Arbitrumorganization
Timeline(11 events)
2021
LI.FI founded in Berlin, Germany by Philipp Zentner and Max Klenk.
20 March 2022
First exploit: attacker drains approximately $600,000 from 29 wallets using arbitrary call vulnerability in the swapping feature. LI.FI disables swap methods and publishes post-mortem.
July 2022
LI.FI raises $5.5 million seed round led by 1kx.
March 2023
LI.FI raises $17.5 million Series A co-led by CoinFund and Superscrypt.
11 July 2024
LI.FI deploys new GasZipFacet smart contract component, missing whitelist validation present in other facets.
16 July 2024
Second exploit: attacker exploits GasZipFacet arbitrary call vulnerability, draining approximately $11.6 million from 153 wallets on Ethereum and Arbitrum. Protocol immediately disables vulnerable facet. PeckShield characterizes it as 'basically the same' bug as 2022.
18 July 2024
LI.FI announces voluntary compensation plan for the 153 affected wallets, backed by major investors.
February 2025
Bybit exchange suffers approximately $1.4 billion hack attributed to North Korean Lazarus Group.
May 2025
LI.FI reports record May 2025 metrics: $3 billion in volume and 4.37 million executed transactions.
3 June 2025
ZachXBT publicly alleges that DPRK hackers laundering Bybit hack proceeds accounted for 15–25% of LI.FI's May 2025 activity, and that over half of Bybit stolen funds had become untraceable on-chain.
11 December 2025
LI.FI raises $29 million Series A extension led by Multicoin Capital and CoinFund, bringing total capital raised to approximately $51.7 million.
Decision Log
- slot 455364445 · hash E7NPhhjYbkmuqswnzDtxE4CWgcfz9cBjvu9KtpaapdM2
- slot 422640779 · hash BoGXVnbgVcnaWqqQtZ8o5KnBx2H5E55T2gGEefnwc9y3
This investigation is cryptographically anchored to the Solana blockchain (2 decisions). 21 of 23 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:31 AM
last updated: 10/10/2026, 6:44:42 PM
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