DeFi Company Rari Capital To Reimburse UpTo $26 Million After Getting Hacked For 2600 ETH

Last weekend, Rari Capital was hit with an attack that left them down by 2600 ETH – which was around 60% of all user funds in the Rari Capital Ethereum Pool.

A DeFi company that automates yield farming by rebalancing users’ funds and pools, the attack seems to have been carried out by “evil contract” exploits affecting the HomoraBank contract.

However, Alpha Finance Lab itself seems to not have been affected.

The hacker’s message

Currently in possession of an ETH wallet recently emptied into Tornado.Cash Proxy transactions, the hacker took the time to leave a tongue-in-cheek message to the recently attacked DeFi firm.

However, the message also seems to indicate that Alpha Homora’s security prevented Rari from taking yet another $6 million in losses.

In an update by the founder of Rari Jai Bhavnani, holders of the DeFi firms tRGT token will be able to claim reimbursement in RGT – up to a total sum off all reimbursed losses of $26 million.

While it was indeed initially meant to scale the team, all of the protocol contributors have elected to give that 2M $RGT back to the DAO with the ask of using the newly acquired $RGT to reimburse lost funds and reward those that helped in the war room.

Jai Bhavnani, founder of Rari Capital

The price of RGT dropped steeply after the attack, losing nearly half of its value. Reportedly it has been proposed that the reimbursement funds will be taken from the developer incentive stash held by the DeFi company, in possession of 1% of all RGT.