Rari Fuze hacker offered $10M bounty by Fei Protocol to return $80M loot
Decentralized finance (DeFi) platform Fei Protocol offered a $10 million bounty to hackers in an attempt to negotiate and retrieve a major chunk of the stolen funds from various Rari Fuse pools worth $79,348,385.61 or nearly $80 million.
On April 30, Fei Protocol informed its investors about an exploit across numerous Rari Capital Fuse pools while requesting the hackers to return the stolen funds against a $10 million bounty and a ‘no questions asked’ commitment.
We are aware of an exploit on various Rari Fuse pools. We have identified the root cause and paused all borrowing to mitigate further damage.To the exploiter, please accept a $10m bounty and no questions asked if you return the remaining user funds.
While the exact losses from the exploit were not officially released, DeFi investigator BlockSec’s monitoring system detected a loss of more than $80 million — citing the root cause as a typical reentrancy vulnerability. While reentrancy bugs have been the main culprit in many exploits within the DeFi ecosystem, the $80 million loot makes the Fei Protocol exploit one of the largest reentrancy hacks ever.
Upon further investigations, Rari developer Jack Longarzo revealed a total of six vulnerable pools (8, 18, 27, 127, 144, 146, 156) that have been temporarily paused while an internal fix is underway. At the time of writing, Rari’s internal and external security engineers partnered with DeFi service provider Compound Treasury to further investigate and neutralize the hack.
Providing further insights into the development, blockchain investigator PeckShield narrowed down the exploit to a reentrancy bug, which allows hackers to use a function and make external calls to another untrusted contract.
The old reentrancy bug bites
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