Decentralized finance (DeFi) platform Raft became the target of a hack attack on the same day as Poloniex, which suffered a major hack with over $100 million stolen on November 10th. The attack resulted in the theft of hundreds of Ethereum (ETH) worth approximately $3.3 million from the DeFi platform. Interestingly, the hacker who carried out the attack lost money instead of making a profit.
Hacker Couldn’t Profit, Lost 4 ETH Instead
According to on-chain data, the hacker who carried out the attack withdrew 1,577 ETH from Raft and then sent 1,570 ETH to a burn address, effectively destroying most of the stolen assets. Prior to the attack, the hacker’s wallet address received 18 ETH through the crypto mixer Tornado Cash to fund the transactions.
After performing the transfers and paying transaction fees, the hacker’s crypto wallet was left with only 14 ETH. This shows that the hacker not only failed to profit from the attack but also incurred a loss of 4 ETH.
Platform’s Stablecoin R Crashes After the Attack
According to data from crypto data and price platform CoinMarketCap, Raft’s stablecoin R, pegged to the US dollar, experienced a drop of up to 50% immediately after the attack. As of the time of writing, R stablecoin is at 0.12, representing an 87.4% decrease.
David Garai, co-founder of Raft, confirmed on his personal Twitter account that the platform was targeted in a hack attack. Garai stated that the attacker then dumped the sold R tokens to drain the automated market maker liquidity and also withdrew collateral from Raft. In a Telegram message, Garai said, “We are trying to bring people together using the protocol’s sDAI in the Peg Stability Module.”
Raft is a DeFi lending platform that issues the R stablecoin collateralized with liquid staking ETH derivatives such as Lido DAO’s (LDO) stETH. Users can mint R tokens by locking their ETH derivatives.
