Stablecoin Minting on Raft Temporarily Suspended After Security Breach

The Raft Defi Platform Temporarily Suspends Minting of R Stablecoin

Currently, the defi platform Raft has temporarily suspended the minting of its R stablecoin due to a security vulnerability that resulted in a substantial loss. 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. Raft co-founder David Garai confirmed the attack on their platform, which saw the assailant minting R tokens and draining automated market maker liquidity while withdrawing collateral from Raft concurrently.

We are aware of a potential security vulnerability.

We are currently investigating and will provide an update as soon as we can.

— Raft (@raft_fi) November 10, 2023

Raft’s Response and Impact on R Stablecoin Price

The disruption caused the R stablecoin to significantly drop its price from $1 to $0.18. According to CoinGecko, at the time of writing, the cryptocurrency was trading at $0.057965, which is 92.3% below its previous level. According to on-chain analysts, a hacker allegedly exploited the system, resulting in the burning of a significant amount of ether (ETH). 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.

Hacker’s Activities and Losses

The on-chain data shows the hacker drained 1,577 ETH from Raft and then sent 1,570 ETH to a burn address. 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.

absolutely unhinged
1. hacker pulled 18 ETH from tornado cash
2. hacked a total of 1,577 ETH
3. burned 1,570 ETH and sent remaining 7 ETH to themselves
4. After fees, they’re left with 14 ETH

So total profit after fees is -4 ETH

mf might go to jail to LOSE 4 ETH

— 0xngmi (@0xngmi) November 10, 2023

Impact on Users and Future Security Measures

The defi lending platform issues the R stablecoin collateralized by liquid staking ETH derivatives. According to Garai, the company is now focused on securing its users’ operations and restoring stability to its platform.

Hot Take: Recovering from Security Breach

The recent security breach at Raft has led to significant losses for both the platform and its users. The impact on the R stablecoin’s value has been drastic. However, it appears that the hacker also suffered substantial losses due to a coding error when attempting to exploit the system. As Raft works towards securing its operations and restoring stability for its users following this incident, it will be crucial for them to implement robust security measures moving forward in order to prevent similar breaches in the future.