Rari Capital has become the latest decentralized finance (DeFi) project to suffer an attack, losing $11 million.
Rari Capital suffers $11m loss in a high-profile exploit
Decentralized financial platform Rari Capital has revealed that it suffered a high-profile exploit, losing an enormous amount. Rari Capital has now become the latest DeFi project to suffer from hackers.
The DeFi platform revealed this in a tweet yesterday, stating that “There has been an exploit in the Rari Capital ETH Pool related to our @AlphaFinanceLab integration. The rebalance has removed all funds from Alpha in response. We are currently investigating the situation, and a full report will be shared once we assess everything.”
Rari Capital is a DeFi platform builds optimized yield vaults and boutique lending pools. The exploit is an “evil contract,” a hack designed to trick a contract into thinking a hostile contract should be granted access or permissions.
According to Alpha Finance, the hack was related to Rari Capital’s interest-bearing ibETH vault. However, Alpha’s funds were safe following the attack. “Funds are SAFE on #AlphaHomora. We are notified that @RariCapital has suffered from an exploit that was because of the incorrect assumption when using HomoraBank contract, as they were setting up an ibETH pool on their platform. #Alpha team is here to help,” the Alpha team tweeted.
Following the attack, the hacker’s wallet held over 4,005 ETH worth over $15,000,000. However, the attacker has withdrawn most of the funds, and the wallet currently holds less than 1 ETH.
Crypto platforms still suffer from occasional hacks
Cryptocurrency platforms have lost billions of dollars to hackers over the past decade. Rari Capital’s attack shows that security should remain a priority for cryptocurrency-focused platforms, both centralized and decentralized ones.
Most platforms have compensated users who lost their funds in an attack. However, the Rari Capital team is yet to reveal its plans for the lost funds. RGT, Rari’s governance token, dipped by nearly 20% since the attack and is currently trading close to $15.