DeFi project Rari Capital became the newest victim of a security exploit on the 15th of May after the platform was exploited of nearly $10 million in Ether (ETH). Specifically, Rari Capital lost 2,600 ETH from its Ethereum pool.
Announcing the hack on Twitter, Rari Capital said:
“There has been an exploit in the Rari Capital ETH Pool related to our AlphaFinanceLab integration. The rebalancer has removed all funds from Alpha in response. We are currently investigating the situation, and a full report will be shared once everything is assessed.”
Following the announcement, the price of Rari Governance Token (RGT) declined nearly 50%. The token fell from $17.39 to $9.10 within an hour. However, RGT has rebounded and currently trades at $12.24.
Furthermore, Rari Capital promised to compensate users affected by the hack. Cointelegraph stated in a report that the DeFi project may use its developer fund to refund victims of the attack.
According to Coinjournal, the total funds exploited represents 60% of all user funds in the Ethereum Pool.
Speaking on the hack, Rai founder Jai Bhavnani said that the protocol will “bounce back harder than ever.” He added that there would no longer be a Rari Capital team. Instead, the protocol will have token holders and contributors.
Image Credits: Pixabay
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