#Bitfinex has fallen prey to a deposit #exploit, resulting in losses of approximately 8.5 #BTC. This exploit involves consolidating tiny inputs into high-priority withdrawal transactions, with fees far exceeding their value. Notably, these inputs originate from commitment transactions for Atomicals' "infinity" token mints, using a proof-of-work scheme. Users, finding it impractical to construct transactions themselves due to increasing difficulty, use services like #WizzWallet for mining, paying a small fee per token. To bypass uneconomical fees, they send worthless outputs to Bitfinex, benefiting from its free #bitcoin deposits. This tactic has cost Bitfinex around 9.13 BTC in consolidation fees, highlighting the vulnerability of custodial services to such exploits.
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