Home - Blockchain - DeFi Lending Platforms Lost Over $80M in the Recent Attack


May 1, 2022

DeFi Lending Platforms Lost Over $80M in the Recent Attack

DeFi exploits have been a recurrent issue this year, with roughly $1 billion lost in in the first quarter alone. BlockSec, a blockchain analytics and security firm, disclosed a new $80 million DeFi attack.

Hackers have targeted DeFi platform Rari Capital, according to a BlockSec report via their Twitter accounts. According to the tweet, the hackers stole $80 million in digital assets.

Rari Capital’s Fuse Platform, which provides developers with the infrastructure to construct bespoke lending systems, was the focus of the attack, according to BlockSec. The organization stated that hackers exploited a flaw in the Fuse Platform’s smart contract’s reentrancy protocol.

Fei Protocol, the producer of a dollar-pegged stablecoin known as Fei USD, was among the pools attacked by the vulnerability. The vulnerability was discovered by the Fei Protocol team. Rari Capital acknowledged in a message that they had identified the cause of the theft and that lending on the platforms had been halted, offering a $10 million bounty to the hacker for the safe return of the stolen assets.

This year, DeFi vulnerabilities have come to the fore, virtually equaling the $1.3 billion lost to DeFi breaches in 2021 in only five months in 2022. The Rari protocol joins the Ronin Network, Inverse Finance, and Beanstalk as victims of this year’s exploits.

Tornado Cash, an Ethereum mixing protocol, has played a crucial role in several of these attacks, assisting hackers in concealing their tracks.

The Ronin assault was the most costly in terms of digital assets destroyed, with the network losing over $625 million as a result of the breach. Notably, US authorities have subsequently traced the attack to a North Korean State-funded organization known as Lazarus.

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According to recent sources, Ronin makers Sky Mavis are presently working on improving security and compensating impacted members of the community. Binance also assisted in recovering a portion of the loot since the hackers attempted to sell it on the main exchange.