Raft, a DeFi Platform, Has Acknowledged a “Security Vulnerability” and is Pausing the Minting of Its Stablecoin

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Last Updated on November 11, 2023 by Bitfinsider

On Friday, the DeFi platform Raft stopped minting more of its stablecoin, R, after admitting to having a “security vulnerability.”

“We are currently investigating and will provide an update as soon as we can,” it stated on X. “Existing users are still able to repay their positions and receive their collateral.”

Social media users referred to onchain data, which indicated that the apparent exploit had burned millions of ether, according to the hacker’s presumption. Igor Igamberdiev, Head of Research at Wintermute, announced that 6.7 uncollateralized R stablecoin has been created and turned into ether.

He pointed out an apparent coding error on X and stated, “The twist is that they converted them into ETH, which was sent to the null address.” “Instead of sending ETH to the attacker, coins went to the null address, which has no private key, oops.”

The R stablecoin depreciated from its usual $1 price, plunging as low as $0.18 before making a small comeback. According to CoinGecko, it was selling for $0.78 at the time of writing.

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