Rari Capital loses $80 million in hack

An unknown actor withdrew assets estimated at about $80 million from the Rari Capital decentralized-finance protocol, held in its Fuse lending pools.

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
https://t.co/Cbtilpbuw9

— BlockSec (@BlockSecTeam) April 30, 2022

In a smart-contract auditing firm BlockSec attributed the breach to a “typical reentrancy vulnerability” in Fei Protocol’s code.

The developers confirmed the information, paused borrowing of crypto assets, and offered the hacker a $10 million payout for the return of the stolen funds.

We have identified an exploit on Fuse Arbitrum, and borrowing has been disabled as we continue to investigate.

Updates will continue to be shared. https://t.co/usL0afFfeT

— Rari Capital (@RariCapital) May 1, 2022

Following the incident, the governance token RGT fell 20%, to $11.50.

Earlier, in May 2021, Rari Capital lost 2600 ETH in a hack.

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