Rari Capital Witnesses Attack: Loses Approximately $80 Million

Rari Capital and Fei protocol recently witnessed a major attack going through a loss of around $80 Million.

The team further offered the hackers a $10 Million Bounty to get a safe return of the funds.

DeFi attacks have always been there in the sector, the bad actors are constantly eyeing more in the DeFi and NFTs space.

DeFi Space Continues To Attract Bad Actors

The crypto industry is not free from frauds and illicit activities. The DeFi sector has also seen similar acts from time to time. And now Rari Capital and Fei protocol are the ones that caught the eyes of the attackers.

The hackers managed to carry out the theft of $80 Million from the Rari’s Fuse lending pools on Saturday, signifies the On-Chain data. The attacker exploited a reentrancy bug, which is a form of smart contract exploit that particularly enables the hacker to trick a protocol into letting them withdraw an excess supply of tokens that they don’t even own.

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Rari’s Fuse pools operate on Ethereum’s vast DeFi ecosystem. They provide a way to develop isolated lending markets for the varied tokenized assets, this is not offered by many other larger and more liquid lending protocols.

And Fei is One of Fuse’s key users, which is a DeFi protocol essentially known for the FEI stablecoin. This protocol supplies FEI to Fuse’s lending markets to contribute to its liquidity surge and bolster the stablecoin.

Recently, the two projects successfully carried out a merger. The team behind Fei took to their Twitter to convey about the hack instantly. They highlighted that they have identified an exploit in the Rari Fuse pools and have halted the borrowing feature.

We are aware of an exploit on various Rari Fuse pools. We have identified the root cause and paused all borrowing to mitigate further damage.
To the exploiter, please accept a $10m bounty and no questions asked if you return the remaining user funds.
— Fei Protocol (@feiprotocol) April 30, 2022

The team further offered the hackers a $10 Million Bounty to get a safe return of the funds.

This is not the first time DeFi space has seen a hack, it is ironic that Ethereum has become the primary hub for DeFi protocols. And these attacks have become a common thing now.

Apart from DeFi, attackers are also targeting the Non-Fungible Tokens (NFTs) sector, especially the popular NFT projects like Bored Ape Yacht Club (BAYC), etc. It is to look forward to how Ethereum enhances itself to deal with such unethical acts.

Source: https://www.thecoinrepublic.com/2022/05/01/rari-capital-witnesses-attack-loses-approximately-80-million/