Rari Capital
Summary
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
1 entities- + 4 more
Timeline(14 events)
2020-07-01
Rari Capital launches its Earn yield-aggregation pools, founded by Jai Bhavnani, Jack Lipstone, and David Lucid
2021-05-08
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
2021-09-01
Rari governance approves minting 10 million additional RGT tokens for DAO treasury
2021-12-01
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
2022-03-03
Security researchers (samczsun, hritzdorf, YSmaragdakis) identify a reentrancy vulnerability in Fuse pools; borrowing paused for 16 hours; funds preserved
2022-04-01
Rari Capital releases Security Upgrade Report claiming reentrancy vulnerabilities have been patched; exitMarket() function remains unprotected
2022-04-30
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
2022-05-01
Tribe DAO snapshot vote passes 75% in favor of covering hack losses; Fei Labs later declares snapshot votes non-binding
2022-05-01
Stolen funds begin flowing through Tornado Cash; attacker does not respond to $10 million bounty
2022-08-19
Fei Labs proposes full wind-down of Tribe DAO; partial repayment cap of $500k-$1M per address proposed, drawing industry criticism
2022-09-01
Tribe DAO's fourth repayment vote passes with 99% in favor of full reimbursement to hack victims; dissolution proceeds
2024-01-10
Rari Capital announces shutdown of frontend applications effective February 29, 2024
2024-09-18
SEC announces settled charges against Rari Capital Inc. and co-founders Bhavnani, Lipstone, and Lucid for misleading investors and acting as unregistered brokers
2024-09-19
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
- hash: 31fAa7U8mFrv8iAA5nhXoF4FCsYdLZDohVwtgX6p3v6c
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:57 AM
last updated: 5/21/2026, 6:45:44 PM
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