Raft

David

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Tornado

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 <p class="is-style-lead">The defi platform Raft has temporarily suspended the minting of its R stablecoin due to a security vulnerability that resulted in a substantial loss.&nbsp;</p>
 <p>The company is currently investigating the incident and has promised to keep its users updated. Existing users, however, can continue with loan repayments and collateral retrieval.</p>
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    <p lang="en" dir="ltr">We are aware of a potential <a rel="noopener noreferrer nofollow" title="security" href="https://thebittimes.com/tag/security.html">security</a> vulnerability. <br><br>We are currently investigating and will provide an update as soon as we can.</p>— Raft (@raft_fi) November 10, 2023
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 <p>Raft co-founder David Garai confirmed the attack on their platform, which saw the assailant <a rel="noopener noreferrer nofollow" title="minting" href="https://thebittimes.com/tag/minting.html">minting</a> R tokens and draining automated market maker liquidity while withdrawing collateral from Raft concurrently.</p>
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    <p lang="en" dir="ltr">There's been an exploit situation for @raft_fi where the exploiter minted R (which was then sold to drain AMM liquidity), and also managed to withdraw collateral at the same time<br><br>We are investigating – post-mortem will follow soon</p>— DG (@davgarai) November 10, 2023
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 <p>The defi lending platform issues the R <a rel="noopener noreferrer nofollow" title="stablecoin" href="https://thebittimes.com/tag/stablecoin.html">stablecoin</a> collateralized by liquid staking ETH derivatives.&nbsp;According to Garai, the company is now focused on securing its users’ operations and restoring stability to its platform.</p>
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 <p>The disruption caused the R stablecoin to significantly drop its price from $1 to $0.18. Per CoinGecko, at the time of writing, the cryptocurrency was trading at $0.057965, which is 92.3% below its previous level.</p>
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   <img decoding="async" width="1200" height="1200" src="https://cdn.thebittimes.com/images/2023/11/12/66235c6857349752556749e1dbe21553.webp" alt="Raft halts stablecoin minting following security breach - 1"> 
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   R stablecoin price chart | Source: CoinGecko
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 <p>According to on-chain analysts, a hacker allegedly exploited the system, resulting in the burning of a significant amount of ether (ETH).&nbsp;</p>
 <p>However, a twist of fate saw the hacker presumably suffering a setback due to a coding error. The ether, instead of directing to the hacker’s address, was sent to a null address, making them irretrievable.</p>
 <p>The on-chain data shows the hacker drained 1,577 ETH from Raft and then sent 1,570 ETH to a burn address.&nbsp;</p>
 <p>The exploiter’s crypto wallet was left with just 7 ETH, a net loss compared to a reported 18 ETH initially funded via the sanctioned crypto mixer service, Tornado Cash.</p>
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    <p lang="en" dir="ltr">absolutely unhinged<br>1. hacker pulled 18 ETH from tornado cash<br>2. hacked a total of 1,577 ETH<br>3. burned 1,570 ETH and sent remaining 7 ETH to themselves<br>4. After fees, they're left with 14 ETH<br><br>So total profit after fees is -4 ETH<br><br>mf might go to jail to LOSE 4 ETH</p>— 0xngmi (@0xngmi) November 10, 2023
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 <p>Igor Igamberdiev, the Head of Research at Wintermute, noted that the hacker minted 6.7 uncollateralized R <a rel="noopener noreferrer nofollow" title="stablecoin" href="https://thebittimes.com/tag/stablecoin.html">stablecoin</a> and converted it into ether.&nbsp;</p>
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    <p lang="en" dir="ltr">1/6<br><br>Sad, but @raft_fi was exploited, and the attacker was able to mint 6.7 uncollateralized R <a rel="noopener noreferrer nofollow" title="stablecoin" href="https://thebittimes.com/tag/stablecoin.html">stablecoin</a><br><br>The twist is that they converted them into ETH, which was sent to the null address, but first things firsthttps://t.co/q6U5fyRek9</p>— Igor Igamberdiev (@FrankResearcher) November 10, 2023
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 <p>However, due to the coding error, the ether ended up in the null address.</p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/raft-halts-stablecoin-minting-following-security-breach-tbt70006.html">https://thebittimes.com/raft-halts-stablecoin-minting-following-security-breach-tbt70006.html</a></p>

Raft halts stablecoin minting following security breach

TheBitTimes

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