Hackers target the 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 DAO attack in June 2016, for example, resulted in the theft of roughly $60 million in cryptocurrency.
The cause, according to Wu, is a re-entry vulnerability that is routinely exploited. A reentry attack happens when the execution of a smart contract is halted and then resumed (re-entered) from the beginning.
Hackers target the Rari Capital and Fei Protocol DeFi platforms, stealing $80 million in cryptocurrency
Colin Wu reported on a hacker who targeted DeFi platform Rari Capital and the Phi protocol, resulting in an $80 million cryptocurrency loss. Colin Wu stated that several pools belonging to these services have been 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 reentry attack occurs when a smart contract’s execution is paused 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 the theft of around $60 million in Ethereum.
Breaking: BlockSec found 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.
— Wu Blockchain (@WuBlockchain) April 30, 2022
Fei Protocol has also tweeted that they are aware of the issue, which impacts many Rari Fuse pools. They have ceased all borrowing actions on them in order to prevent further cash theft. In exchange for restoring the remaining monies to their clients, the tweet’s author has 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 paused all borrowing to mitigate further damage.
To the exploiter, please accept a $10m bounty and no questions asked if you return the 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 project’s purpose is to broaden the concept of stablecoins by incorporating a number of technologies. It uses a protocol-controlled value (PCV) stability mechanism, as well as other ways, 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.
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