An attacker exploited the Raft defi project after finding a vulnerability that allowed them to mint 6.7 million of Raft’s R stablecoin without any backing.
The attacker then went to convert the R into ETH, which they would then be able to launder and cash out. However, an error in the attacker’s code caused 1,570 ETH ($3.25 million) to be sent to the burn address, rendering it permanently inaccessible to everyone including the hacker. Only 7 ETH remained. However, because they had to spend ETH to fund the attack, the hack ultimately resulted in a loss of 4 ETH (~$8,000) for the perpetrator. Oops.
As a result of the hack, the R stablecoin lost its dollar peg, plummeting down to around $0.70. Raft acknowledged the attack and announced that they had paused minting.
This content was sourced from Web3IsGoingGreat