Infini Files Suit After $50M Theft, Issues Blockchain Legal Notice

Infini has taken legal action against a developer and other unknown individuals tied to a $50 million hack.

The firm has sent an on-chain legal notice, warning the accused to appear in court or face the consequences.

On-Chain Legal Notice Issued

On February 24, several blockchain security platforms reported a suspected security breach on Infini, resulting in the loss of about $49.5 million in USDC.

Initially, the incident had been labeled as a hacking attack, but Cyvers Alert revealed that a developer who had previously worked for Infini was responsible for the theft. The stablecoin issuer also confirmed that the stolen funds were transferred from a multisig wallet to the developer’s personal account.

Following the occurrence, Infini’s parent company, BP SG Investment Holding Limited, filed a lawsuit in Hong Kong, and the court issued an injunction against wallets holding the stolen funds.

The company then used an unconventional yet effective method to serve the legal documents via an on-chain message. The notice named the defendants, including developer Chen Shaxuan and three other unidentified people, who allegedly had access to specific wallets linked to the theft.

“The specific crypto assets held in the Programmer Wallet, the First Layer Wallet, and/or the Second Layer Wallet, including but not limited to the assets traced from the Plaintiff’s funds amounting to 49,516,662.977 USDC, are subject to an ongoing legal dispute and are contentious in nature,” Infini’s message read.

It also stressed that anyone who later receives the stolen funds will not get any legal protection, even as good-faith buyers. The defendants must now attend a hearing on March 27 or risk further legal action.

Before going to court, Infini made several attempts to recover its stolen assets. In one on-chain message, the digital-only neo-bank revealed that it was collaborating with exchanges and security agencies to identify the suspects.

In another message, the company urged the accused to return 80% of the looted funds to its Cobo custodian wallet. In exchange, it promised to halt all tracking efforts and ensure they faced no consequences. However, despite the evidence collected against them and the offers made to them, the accused remained silent, prompting Infini to proceed with legal measures.

A New Legal Frontier

This case isn’t the first time Hong Kong has used blockchain technology to serve legal orders. Earlier in the year, a court in the Special Administrative Region reportedly tagged several suspected scam wallets on Tron with “digital police tape.” This meant that anyone transacting with the marked wallets would effectively be in violation of criminal laws.