Hacker steals $80 million from Rari Capital's Fuse lending pools

DeFi platform Rari Capital was hacked for more than $80 million in crypto assets held within its Fuse lending pools.

According to smart contract audit company BlockSec, the unknown hacker stole from Rari Capital's Fuse platform — a product that enables DeFi developers to create lending markets of their own. The security firm said the exploit occurred through a reentrancy vulnerability in the protocol’s smart contract.

Among those losing funds was Fei Protocol,  a development team that runs a decentralized US dollar-pegged stablecoin called Fei USD. The Fei Protocol team manages lending markets on Fuse, where users can deposit funds for an annual yield and also take out loans in FEI stablecoin

In a Twitter post, Fei Protocol acknowledged the massive exploit and asked the hacker to return the funds in exchange for a $10 million bounty.

Update: The headline was updated to clarify the exploit targeted Rari Capital's 'Fuse' platform.

About Author

Vishal Chawla is a reporter who has covered the ins and outs of the tech industry for more than half a decade. Prior to joining The Block, Vishal worked for media firms like Crypto Briefing, IDG ComputerWorld and CIO.com. Follow him on Twitter @vishal4c.