Neobank Token Plunges 49% Following $1.1 Million Crypto Card Exploit
The native token of a crypto neobank dropped 49% to all-time lows after a security exploit drained $1.1 million via its card service.
A crypto-focused neobank experienced a security breach in its card service, resulting in the theft of approximately $1.1 million in digital assets. Following the disclosure of the exploit, the platform's native AVICI token plummeted 49% from its intraday high, touching an all-time low.
The attack underscores persistent vulnerabilities at the intersection of traditional payment card rails and decentralized finance infrastructure. Security incidents targeting payment integrations directly impact user trust and can trigger rapid liquidity depletion across related tokens.
Although the token managed to pare some losses following the initial sell-off, risk sentiment around connected payment infrastructure remains cautious. The protocol will likely face heightened scrutiny regarding its smart contract auditing and user fund protection mechanisms.
Key takeaways
- A crypto neobank card exploit resulted in an estimated $1.1 million financial loss.
- AVICI token tumbled 49% to record lows before recovering a portion of the decline.
- The incident highlights lingering risks in bridging traditional payment cards with DeFi.