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>>The $50 million theft from Infini Labs was a "typical inside job," according to a cybersecurity specialist.

The $50 million theft from Infini Labs was a "typical inside job," according to a cybersecurity specialist.

crypthub

3/20/2025, 3:10:24 PM

Infini Labs Suits Former Engineer

Infini Labs, a crypto neobank, has filed a lawsuit against Chen Shanxuan, accusing him of embezzling nearly $50 million in USDC from the platform. As a lead developer, Chen allegedly retained 'super admin' access to the smart contract, enabling him to steal funds without multi-signature authorization. The suit reveals Chen's history of debt and gambling, suggesting financial motivation for the heist.

The Crypto Heist and Its Aftermath

Initially believed to be a hack, the loss was later attributed to Chen's actions. Infini Labs sought asset freezes and transaction details from him. The founder offered a 20% bounty and legal immunity if the hacker returned the funds. This incident highlights the risks of centralized authority in DeFi, as stated by Trugard's CTO, Jeremiah O'Connor.

Lessons Learned from the Incident

O'Connor emphasizes that security in DeFi should rely on verifiable, enforced protections rather than trust alone. He suggests implementing multi-signature wallets, on-chain transparency, or timelocks for admin changes to prevent similar exploits in the future.