Ethereum-based DeFi project hacked, $11 million stolen
News

Ethereum-based DeFi project hacked, $11 million stolen

Saudu Clement
Saudu Clement

Rari Capital, an Ethereum-based decentralized finance (DeFi) project has lost $11 million to the cold hands of hackers.

The company announced on Saturday that about 60% of its entire user funds were stolen by hackers. As per the announcement, the hackers stole approximately 2600 ETH from the project’s Ethereum pool. However, unlike other hack cases such as the infamous Mt.Gox security breach that has lingered on for years, Rari’s token holders have voted to issue reimbursements.

The community will be setting aside 2 million RGT to compensate users that lost their tokens in the hack. With the price of the digital asset trading at around $12.43, the compensation plan comes in at $24 million.

According to CEO Jai Bhavnani, team members will be sacrificing their RGT allocations to see that affected users are refunded. He said:

Countless protocols get hacked each year and it is a matter of how the community and the protocol that determines the future of the project.

Rari Capital describes itself as a “robo-advisor for maximizing yield.” The non-custodial fund promises to juice the gains of users who entrust the company with their funds.

This year alone, the cryptocurrency industry has experienced several hacks, rug pools, and exit scams. As reported by BTC PEERS, the CEO of a Turkish exchange Thodex allegedly fled with $108 million worth of cryptos belonging to customers.

Rari’s innocence is hinged on how and when affected users will be reimbursed.