Hackers target Rari Capital and Fei Protocol DeFi platforms, stealing $80 million in cryptocurrency. Hackers took advantage of a re-entry vulnerability that is frequently exploited. The June 2016 DAO attack, for example, resulted in the theft of approximately $60 million in cryptocurrency.
The cause, according to Wu, is a re-entry vulnerability that is regularly exploited. A re-entry attack occurs when the execution of a smart contract is interrupted and then resumed (re-entered) from the beginning.
Hackers target Rari Capital and Fei Protocol DeFi platforms, stealing $80 million in cryptocurrency
Colin Wu reported on a hacker who targeted the DeFi platform Rari Capital and the Phi protocol, resulting in a loss of $80 million in cryptocurrency. Colin Wu said multiple pools belonging to these services were targeted, citing BlockSec data. Colin Wu is a Chinese crypto journalist and blogger.
According to Wu, the cause is a re-entry vulnerability that is commonly exploited. A re-entry attack occurs when the execution of a smart contract is interrupted and then resumed (re-entered) from the beginning. A well-known example of such an assault is the DAO breach in June 2016, which resulted in around $60 million being stolen from Ethereum.
Breaking: BlockSec has found that several pools linked to @RariCapital @feiprotocol were attacked and lost over US$80 million. The root cause is due to a typical reentrancy vulnerability.
– Wu Blockchain (@WuBlockchain) April 30, 2022
Fei Protocol also tweeted that they are aware of the issue, which affects many Rari Fuse pools. They ceased all borrowing action on them in order to avoid further thefts of money. In exchange for returning the remaining funds to their customers, the tweeter offered the hacker a $10 million reward for the stolen Bitcoin.
We are aware of an exploit on various Rari Fuse pools. We have identified the root cause and suspended all borrowing to mitigate further damage.
To the exploiter, please accept a $10 million bounty and no questions asked if you return remaining user funds.
— Fei Protocol (@feiprotocol) April 30, 2022
The Fei Protocol, which is a completely decentralized stablecoin project, was designed by Fei Labs Inc. The goal of the project is to expand the concept of stablecoins by incorporating a number of technologies. It uses a protocol-controlled value (PCV) stability mechanism, along with other means, to keep the Uniswap liquidity pool and FEI, its native stablecoin, close to the US dollar exchange rate. TRIBE, a native governance token, is also introduced.
If you find this article informative, don’t forget to share it with your friends and family! Let us know what your thoughts are in the comments section below.
Also Read: Finland Plans to Donate Bitcoin to Ukraine