The decentralized finance (DeFi) platform Raft has temporarily halted the minting of its stablecoin, R, citing the detection of a "security vulnerability."
The decentralized finance (DeFi) platform Raft has temporarily halted the minting of its stablecoin, R, citing the detection of a "security vulnerability." The platform made this announcement on Friday and assured existing users that they can still settle their positions and receive collateral during the ongoing investigation.
Social media users highlighted on-chain data suggesting a potential exploit, where an assumed hacker burned millions worth of ETH. Igor Igamberdiev, Head of Research at Wintermute, disclosed that 6.7 million uncollateralized R stablecoins were minted and subsequently converted into ETH. However, due to a coding error, the ETH was mistakenly sent to the null address instead of the attacker's address, as clarified by Igamberdiev.
Analyzing the chain, the hacker drained 1,577 ETH from Raft then burned 1,570 ETH. This destroyed most of the stolen assets while leaving 7 ETH behind. The hacker's wallet had received 18 ETH before the attack via Tornado Cash, likely to fund transactions.
After moving funds and paying fees, the hacker was left with just 14 ETH - less than their 18 ETH starting balance. So it all resulted in a 4 ETH loss.
Following the incident, the R stablecoin experienced a significant depeg, dropping from its usual $1 value to as low as $0.11 at the time of writing. Raft is actively investigating the security vulnerability.
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