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anchored·2decZa…KBGjSummary
Rari Capital was a DeFi yield-aggregation and lending protocol launched in July 2020 by teenage co-founders Jai Bhavnani, Jack Lipstone, and David Lucid. It suffered two major security exploits — a $11 million hack in May 2021 and an $80 million reentrancy hack in April 2022 — and subsequently merged with Fei Protocol to form Tribe DAO before winding down in 2022. In September 2024, the SEC secured final court judgments against the company and all three co-founders for misleading investors and operating as unregistered brokers.
Connected Entities
6 entities · 60 linked investigations- Compound V2→mentioned with→Ethereum(80%)
- Midas Capital→mentioned with→Ethereum(60%)
- Midas Capital→mentioned with→Fei Protocol(75%)
- Fei Protocol→mentioned with→Rari Capital(80%)
- Compound V2→mentioned with→Rari Capital(80%)
- Midas Capital→mentioned with→Compound V2(80%)
- Midas Capital→mentioned with→Rari Capital(80%)
- Rari Capital→mentioned with→Compound V2(80%)
- Rari Capital→mentioned with→Midas Capital(80%)
- Rari Capital→mentioned with→Fei Protocol(80%)
- + 4 more
Timeline(14 events)
July 2020
Rari Capital launches its Earn yield-aggregation pools, founded by Jai Bhavnani, Jack Lipstone, and David Lucid
8 May 2021
First major exploit: $11 million stolen from Rari Capital's Ethereum Pool via manipulation of Alpha Finance's ibETH integration, representing approximately 60% of user deposits
September 2021
Rari governance approves minting 10 million additional RGT tokens for DAO treasury
December 2021
Rari Capital merges with Fei Protocol to form Tribe DAO; RGT tokens convert to TRIBE at a rate of 10 RGT = 267 TRIBE; combined TVL approximately $2 billion
3 March 2022
Security researchers (samczsun, hritzdorf, YSmaragdakis) identify a reentrancy vulnerability in Fuse pools; borrowing paused for 16 hours; funds preserved
April 2022
Rari Capital releases Security Upgrade Report claiming reentrancy vulnerabilities have been patched; exitMarket() function remains unprotected
30 April 2022
Second major exploit: approximately $80 million stolen from Fuse pools 8, 18, 27, 127, 144, 146, and 156 via reentrancy attack through unprotected exitMarket() function; Fei Protocol offers $10 million bounty for return of funds
May 2022
Tribe DAO snapshot vote passes 75% in favor of covering hack losses; Fei Labs later declares snapshot votes non-binding
May 2022
Stolen funds begin flowing through Tornado Cash; attacker does not respond to $10 million bounty
19 August 2022
Fei Labs proposes full wind-down of Tribe DAO; partial repayment cap of $500k-$1M per address proposed, drawing industry criticism
September 2022
Tribe DAO's fourth repayment vote passes with 99% in favor of full reimbursement to hack victims; dissolution proceeds
10 January 2024
Rari Capital announces shutdown of frontend applications effective February 29, 2024
18 September 2024
SEC announces settled charges against Rari Capital Inc. and co-founders Bhavnani, Lipstone, and Lucid for misleading investors and acting as unregistered brokers
19 September 2024
U.S. District Court for the Central District of California enters final judgments; co-founders receive five-year officer-and-director bars and monetary penalties totaling approximately $151,976
Decision Log
- slot 421258836 · hash 31fAa7U8mFrv8iAA5nhXoF4FCsYdLZDohVwtgX6p3v6c
This investigation is cryptographically anchored to the Solana blockchain (1 decision). 22 of 24 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:57 AM
last updated: 8/29/2026, 1:34:52 AM
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