Raft $3.3M November 2023 Loss Another Indicator That DeFi Platforms Lack Security Alerts For Suspect Transactions

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DeFi has long been the victim of security lapses that have allowed hackers to steal millions of dollars. Raft is only among the most recent casualties. The DeFi platform developers just don’t seem to be very motivated or skilled at foreseeing possible security lapses within the DeFi community. As stated in the FXStreet Team piece below, this is just another loss.

Raft, a decentralized finance (DeFi) lending platform, was hacked, with the exploiter making away with 1,577 ETH, worth approximately $3.3 million at current rates. Raft co-funder David Garai confirmed the hacker attack in a Telegram message.

Out of the 1,577 ETH, 1,570 tokens were sent to a burn address, likely erroneously, leaving the exploiter with just about 7 ETH.  

Blockchain data on Arkham shows that prior to the attack, the hacker’s address received 18 ETH through crypto mixer service Tornado Cash, which may have been to fund transactions.

After the loot, payment of transaction fees, and effective transfer, the hacker’s crypto wallet had a remaining balance of 14 ETH.

The exploit has seen Raft’s R dollar-pegged stablecoin lose up to 50% in value, dropping from its supposed $1 price shortly after the hack. Nevertheless, it plowed back to the value of around $0.70 cents.

PeckShield says, “Our analysis shows the hack takes advantage of round issue and donation to (1) manipulate the collateral token’s index rate of rcbETH-c to borrow/mint $6.7m R and (2) mint extra rcbETH-c so that the donation can be fully redeemed back.”

Via this site