Avici Solana Neobank Hack: $1M Breach, 1,685 Refunded

Solana-based neobank Avici confirmed on August 29, 2026 that it will fully reimburse 1,685 users hit by a security breach tied to an outdated card smart contract, with credits processed automatically over the coming weeks. Avici’s own figures put the confirmed card-balance loss at $500,859.22, while the broader on-chain laundering trail traced by researchers pushed the total closer to $1 million to $1.1 million, according to CoinDesk and CryptoRank. The breach hit August 28 and triggered a swift compensation pledge, a crash in the AVICI token, and a copycat exploit against an unrelated Ethereum lending protocol less than 24 hours later.

The incident lands at a sensitive moment for crypto-native banking products, which have spent 2026 trying to convince mainstream users that card-linked custody can be as safe as a traditional bank account. Avici’s fast, no-claims-process refund pledge is being read across the industry as a test case for how neobanks handle smart contract failures, and whether goodwill compensation can substitute for the deposit insurance traditional banks carry by law.