Hacker steals $10 million in Ether from DeFi project Rari Capital

In yet another DeFi hack, Rari Capital became the latest casualty, losing $10 million to a hacker and drained of 2,600 Ethereum (ETH).

Initial investigations revealed the possibility that the decentralized finance protocol’s Ethereum pool was exploited by a malicious hacker.

At first, Rari Capital said they are still assessing the situation, and they have removed funds from their recent Alpha Finance Lab integration. Later, they revealed details of the attack, including losses they have incurred.

“DeFi hacks” started becoming rampant towards the end of 2020 and continued to ravage the sector this year.

What is Rari Capital?

Rari Capital is an upcoming decentralized finance project, essentially a Web3 DeFi tool allowing people to deposit crypto assets with the upside of rebalancing them into “highest-yielding stable opportunities.”

It supposedly builds the “Lego effect” of DeFi apps, claiming it provides high yields from the risk-averse mechanisms that have never been seen before.

Just last week, Rari Capital used Twitter to announce that there was an exploit in their protocol that was manipulated, and all funds were removed from Alpha as a result. After this, the project assured them they were investigating the matter, and a “full report will be shared once everything is assessed.”

Rari Capital’s plan of action

When the dust cleared, Rari Capital revealed the malicious attacker was able to steal approximately 2,600 Ethereum (ETH), which has a unit price of almost $4,300 as of press time, according to CoinGecko.

In the aftermath report from Rari Capital, it was stated that such funds were taken from their Ethereum pool before the contracts were paused, stopping the hack initiated by the attacker. The loss is equivalent to “60% of all users’ funds in the Rari Ethereum Pool.

Rari Capital’s team community will convene to discuss their plan of action to compensate their users who lost their funds to the DeFi hack.

 

Image courtesy of Cointelegraph News/YouTube

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