A $1.1 million crypto card hack crashed a neobank's token 49%
A security vulnerability in an outdated contract used by crypto neobank Avici and infrastructure provider Rain led to a $1.1 million hack, causing Avici's token to crash by 49%. While Avici has pledged to refund affected users, the incident highlights significant security risks in the custody handoff process for self-custodial crypto cards.
Why it matters
The exploit underscores the growing systemic risks in the rapidly expanding crypto-card market, where billions in stablecoin spending rely on complex, third-party smart contract infrastructure.
AVICI — a self-custodial neobank that enables users to spend their crypto via a Visa-integrated credit card — fell from a 24-hour high of $0.43 to a record low of $0.217 before recovering to around $0.378 at the time of writing.
Tria, another crypto neobank, reported that 636 users were affected, resulting in losses totaling more than $430,000. It vowed to repay users in full, even as its token plunged by more than 10% at one point.
Avici said the attack was confined to a Solana contract holding funds after customers topped up their cards. Its self-custodial wallets on Solana and Ethereum-compatible networks were not affected, and the company said every affected card balance would be refunded.
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