EtherFi Balances Security Crackdown with Aggressive DeFi Expansion Drive

EtherFi CEO Mike Silagadze has confirmed the company is investigating allegations of "EtherFi Card Skimming" after a user raised concerns on social media. The user reported that a card with no prior transaction history showed signs of unauthorized activity, according to Lookonchain. In response, Silagadze stated, "We are currently investigating this matter and are in communication with our credit card partners. All users who have been affected by fraudulent transactions will receive a refund." The statement underscores EtherFi's commitment to addressing security concerns while maintaining transparency with its user base.

The incident comes amid broader efforts by EtherFi to bolster its market position. Earlier this month, LiveBitcoinNews reported the Ether.fi DAO proposed a $50 million ETHFI token buyback initiative, aiming to stabilize the token's price and reduce circulating supply. The program, which activates when the token trades below $3, aligns with a growing trend in DeFi, where buybacks have collectively reached $1.4 billion in 2025, according to CoinGecko. Ether.fi, which holds $10 billion in total value locked and generates $360 million in annualized fees, has the liquidity to execute such a large-scale buyback without disrupting operations.

Simultaneously, EtherFi is expanding its infrastructure partnerships. SharpLink Gaming (SBET) announced plans to deploy $2 billion in ETH on the Linea blockchain via EtherFi, EigenLayer, and Anchorage, unlocking staking rewards and liquidity opportunities, according to Coinotag. The collaboration highlights EtherFi's role in institutional-grade staking and cross-chain interoperability, with a focus on risk management and sustainable yield generation. These initiatives aim to strengthen EtherFi's position as a key player in the DeFi ecosystem.

The CEO's response to the card skimming allegations also reflects broader industry challenges. As DeFi platforms increasingly adopt traditional financial tools like credit cards, security remains a critical concern. EtherFi's proactive approach-combining investigations, refunds, and market interventions-positions it to balance innovation with user trust. The company's recent activities, from token buybacks to strategic partnerships, demonstrate a dual focus on addressing immediate issues while reinforcing long-term growth strategies.