RARI Foundation Discord Hacked

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RARI Foundation Logo/Homepage

The RARI Foundation is a grant program which manages the RARI DAO treasury, which places them in a position of supplying grants to encourage ecosystem activity. The foundation has regularly promoted their Discord channel throughout 2022 as the place to discuss matters related to the DAO. On August 8th, a malicious actor was able to gain control of their Discord server. There is at least one verified victim who fell for the phishing messages. It's unclear what RARI will be doing to assist them, if anything.[1][2][3][4][5][6][7]

About the RARI Foundation

"RARI Foundation enables the future of NFT infrastructure. $RARI controls the RARI DAO treasury and governs the Rarible protocol and RARI Chain."

"Open Source. Cross-Chain. Community Governed. Rarible makes NFT workflows simple. Developers access multi-chain infrastructure through Rarible’s abstraction layer to remove complexity & increase building efficiency."

"The future of the creator economy is built on-chain with RARI. RARI Chain utilizes node-level royalties to guarantee creators get paid. Users enjoy a secure, low-cost, Layer 3 blockchain to build creator ecosystems & innovative NFT use cases on-chain. All Powered by Arbitrum. Build on-chain with RARI."

"RARI Foundation empowers community ownership. Rari Foundation is governed by its community with $RARI, Tokenholders govern the protocol & control the Foundation's treasury through decentralized, onchain governance mechanisms."

"RARI Foundation is governed by its community. $RARI tokenholders govern the RARI Protocol, control the Foundation treasury, & make decisions for the RARI DAO through onchain governance."

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

  • When the service was actually started (if different than the "official story").
  • Who actually ran a service and their own personal history.
  • How the service was structured behind the scenes. (For example, there was no "trading bot".)
  • Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - RARI Foundation Discord Hacked
Date Event Description
October 19th, 2022 9:33:00 AM MDT Discord Promoted By RARI In one of many regular posts, RARI Foundation promotes their Discord as the place "where all DAO-related discussions live" and encourages users to join.
August 8th, 2024 11:25:00 AM MDT Discord Account Breached A tweet notes that the RARI Foundation discord has been breached and asks why the team is not making any announcement about this.
August 8th, 2024 12:08:00 PM MDT RARI Foundation Announcement RARI Foundation tweets an announcement that they are "taking immediate steps to secure the RARI Foundation server and restore usual activity" and to "refrain from using the server for now".
August 8th, 2024 12:43:25 PM MDT Blockchain Transaction A blockchain transaction transfers 1.126755478331456568 WETH to a smart contract created by a fake phishing address despite the announcement.

Technical Details

This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

Total Amount Lost

The total amount lost has been estimated at $3,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

"The official Discord server of RARI Foundation has been hacked. Please refrain from using the server until the team has regained control."

"Important Announcement: Discord Server Security Breach We're taking immediate steps to secure the RARI Foundation server and restore usual activity. Please refrain from using the server for now. More updates to follow soon."

"Thanks for the heads up. I wish followed you sooner and wouldn’t have reacted to one of these messages."

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.

References

  1. @rarifoundation Twitter (Accessed Aug 9, 2024)
  2. RARI Foundation (Accessed Aug 9, 2024)
  3. Base Transaction Hash (Txhash) Details | BaseScan (Accessed Aug 9, 2024)
  4. @b3nedictvs Twitter (Accessed Aug 9, 2024)
  5. @PGee13 Twitter (Accessed Aug 9, 2024)
  6. @rarifoundation Twitter (Accessed Aug 9, 2024)
  7. SlowMist Hacked - SlowMist Zone (Accessed Aug 9, 2024)