Rari Capital loses $80 million in Fresh Exploit

Defi platforms Rari Capital and Fei Protocol lost $80 million in a hack that exploited the reentrancy vulnerability in the protocols

By Shashank Bhardwaj

Image: Shutterstock

Smart contract analysis firm BlockSec reported that Rari Capital’s platform Fuse lost around $80 million when a hacker exploited the platform’s reentrancy vulnerability. The Rari exploit also caused Fei Protocol to lose funds, Fei Protocol’s official Twitter handle confirmed on Saturday.

After the infamous Ronin exploit, another Defi protocol attacker has managed to take advantage of the Defi platforms’ vulnerabilities. BlockSec revealed in a tweet on Saturday, “ Our monitoring system detected that multiple pools related to @RariCapital @feiprotocol were attacked, and lost more than 80M US dollars. The root cause is due to a typical reentrancy vulnerability. @defiprime.”

Another blockchain security firm PeckShield tweeted that the same vulnerability was exploited to attack Compound’s Defi protocol forks. Rari Capital, after acknowledging the exploit, has paused borrowing globally and assured the community that no further funds were at risk. Fei Protocol merged with Rari last year in December. The protocol tweeted, “ we are aware of an exploit on various Rari Fuse pools. We have identified the root cause and paused all borrowings to mitigate further damage.” The tweet then addressed the hacker and offered a $10 million bounty and no questions asked if the hacker returned the remaining user funds.

The attack hasn’t been the first for Rari Capital. The Defi platform lost $11 million in Ether to another hack that happened on May 8, 2021. Further loss of funds was prevented when the platform stalled its contracts. The loss at that time had equated to 60 percent of the user funds in Rari’s Ethereum Pool.

(further updates will be added as the story is still developing)

Shashank is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

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