Infini files lawsuit over $50M stablecoin hack

Hong Kong-based stablecoin platform Infini has filed a lawsuit in Hong Kong courts against developer Chen Shanxuan and three unidentified individuals linked to a $50 million crypto exploit.

The legal action follows a February 24 hack that drained nearly $50 million in USDC from Infini’s systems.

Infini’s lawsuit, filed on March 24, cites wallets associated with the defendants and warns subsequent holders of the stolen funds that they cannot claim ownership without acknowledging the dispute.

The Hong Kong court issued an injunction via onchain message—a novel legal tactic—to notify anonymous wallets holding the stolen assets.

The platform had previously offered a 20% bounty to the attackers if they returned 80% of the funds, stating they would cease further legal action upon repayment.

However, no funds were recovered, prompting Infini to escalate its pursuit through the courts.

Cybersecurity experts note the timing of the attack coincided with the aftermath of Bybit’s $1.4 billion hack, which occurred days earlier.

“With everyone busy on the investigation and recovery efforts of the $1.5B, the Infini attackers perceived their chances of success to be higher at that moment,” FearsOff COO Marwan Hachem suggested, noting that the attackers exploited the industry’s focus on Bybit’s recovery efforts.

The case highlights growing legal complexities in crypto disputes, particularly the use of onchain injunctions to track stolen assets.

Infini’s actions underscore efforts to hold perpetrators accountable while navigating jurisdictional challenges in decentralised finance.