Avici neobank breach: $1M stolen, token drops 50%

Avici neobank on Solana lost $600K–$1M in a breach. AVICI token dropped nearly 50%. The attack exploited smart contracts, raising concerns over decentralized neobank security.

Solana-based neobank Avici has experienced a significant security breach, with attackers draining between $600,000 and over $1 million from user accounts. The exploit involved a series of smart contract calls that enabled the attacker to add an administrator and withdraw collateral from affected accounts. The incident was first detected through on-chain activity and social media reports. Avici acknowledged issues affecting card balance withdrawals but has not confirmed the full extent of the losses or whether users will be reimbursed. Following the breach, the AVICI token plummeted between 37% and 49%, reaching record lows around $0.22–$0.27. Analysis of the attacker's wallet revealed holdings of over 10,000 SOL and approximately $11,600 in stablecoins, with funds quickly dispersed to other addresses. This breach has heightened concerns about the security of decentralized neobanks and the risks associated with upgradeable smart contracts lacking multisig authority. The incident has also impacted user trust and may prompt increased regulatory scrutiny of similar platforms.