Crypto Hack Bleeds: One Token Lost Half Its Value
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Crypto Hack Bleeds: One Token Lost Half Its Value
A $1.1 million exploit targeting a neobank's crypto card system has sent the platform's AVICI token into freefall, according to CoinDesk, with the token dropping 49% from its 24-hour high before recovering partial ground. The attack hit at the infrastructure layer — the card system itself — exposing a vulnerability that most retail holders never think about until the number on their screen is cut in half.
The neobank has not been named in initial reports, but the mechanics are familiar to anyone who has watched crypto's recurring security failures: a single point of access, inadequately hardened, becomes the entry point for a drain that triggers automated selling, which triggers panic, which triggers more selling. The token hit a record low before stabilising.
This lands in a week when crypto's credibility is already under pressure. Senator Elizabeth Warren has accused the Trump administration of shaping digital asset policy while the President holds personal crypto positions — a conflict-of-interest accusation that has drawn no formal response from the White House. Separately, billionaire Mark Cuban has publicly distanced himself from Bitcoin's recent summer performance, calling the rally unconvincing.
The AVICI collapse is not the largest hack in crypto history by distance. But it is precise in what it signals: the consumer-facing layer — cards, wallets, spending interfaces — remains the softest target in the ecosystem, and the users bearing the risk are rarely the ones who built it.
Whether regulators treat this as a footnote or a case study will say everything.
