Neobank Token Drops 49% Following $1.1M Crypto Debit Card Security Breach
The AVICI token tumbled nearly 50% to an all-time low after a $1.1 million security exploit compromised the platform's crypto debit card service.
Decentralized neobank protocol Avici suffered a security exploit totaling $1.1 million linked to its crypto debit card infrastructure. The breach triggered a rapid sell-off, sending its native AVICI token down 49% to a new record low.
The exploit targeted specific transaction processing vulnerabilities within the card issuance system, prompting the development team to pause affected operations to contain further capital losses. The token subsequently regained a portion of its losses.
The incident highlights the operational and security risks associated with bridging Web3 smart contracts to traditional payment card networks, reinforcing the need for rigorous auditing in crypto-fiat settlement pipelines.
Key takeaways
- An exploit in Avici's crypto card infrastructure resulted in a $1.1 million loss.
- The protocol's native AVICI token dropped 49% to record lows following the incident.
- Operations were temporarily halted as developers investigated vulnerabilities in the payment pipeline.