Rari Capital is a decentralized finance protocol that has recently confirmed a massive hack attack. According to the management of Rari Capital, hackers were able to get away with $80 million in cryptocurrencies. The hackers targeted the cryptocurrency reserves that were present in the Fuse lending pools. The first analysis report of the hack was recently shared by BlockSec.
BlockSec is a fintech auditing organization that specializes in smart contracts. According to the latest tweet by BlockSec, hackers targeted Rari Capital and Fei protocol DeFi pools. The firm also postulated that the hack was made possible due to re-entry protocol vulnerability. However, BlockSec was unable to trace the money trail or identify the hackers behind the incident.
Fei Protocol users took advantage of the same DeFi pools as Rari Capital investors. The Fei protocol allows its users to purchase a DeFi stablecoin called Fei USD. Fei USD value is pegged to USD. The developers of Fei Protocol integrated a third-party lending services provider called Fuse. Using Fuse, the investors can stake their tokens to earn an annual yield percentage.
Furthermore, these staking investors can also apply for loans in the form of Fei stablecoins. The report about the exploit was once again confirmed by Fei Protocol management. The developers of Fei posted on Twitter that the investors could suffer from massive losses due to the hacking incident, and they also posted a plea to the hackers to return the stolen money in exchange for collecting a bounty of $10 million.
DeFi Hacking Incidents are Increasing
DeFi hacks are becoming more notorious during the ongoing months. Two days ago, Deus Finance DAO lost $13.4 million in funds during a hack attempt. The DAO hackers used the flash loaning technique to steal funds from the project. Hackers managed to get away with a massive NFT heist through Instagram.
According to media reports, hackers were after a popular NFT collector who gathered several Bored Ape Yacht Club NFTs. Following the hack, the collector reported having suffered a loss of $13 million at the hand of hackers. Around 19 NFTs were stolen from his private collection of BAYC NFTs. Furthermore, the hackers also managed to get their hands on several other NFT collections from the same target.