Verify a decision

{"actor":"system:backfill","investigation_id":"e91ad123-8616-4736-b352-910683f25205","kind":"publish","page_slug":"rari-capital","published_at":"2026-05-21T18:45:44.854Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Rari Capital","sections":[{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://dailytrojan.com/2021/03/02/iya-freshman-co-creates-cryptocurrency-investment-company/","type":"other","url":""},{"credibility":3,"name":"https://www.sec.gov/newsroom/press-releases/2024-138","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://cointelegraph.com/news/rari-capital-falls-victim-to-11-million-exploit","type":"other","url":""},{"credibility":3,"name":"https://www.halborn.com/blog/post/explained-the-rari-capital-hack-may-2021","type":"other","url":""},{"credibility":3,"name":"https://quadrigainitiative.com/casestudy/raricapitalhack.php","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.coindesk.com/business/2022/04/30/defi-lender-rari-capitalfei-loses-80m-in-hack","type":"other","url":""},{"credibility":3,"name":"https://www.theblock.co/linked/144511/hackers-steal-80-million-from-rari-capitals-lending-pools","type":"other","url":""},{"credibility":3,"name":"https://immunebytes.com/blog/rari-capital-re-entrancy-attack-april-2022-detailed-analysis/","type":"other","url":""},{"credibility":3,"name":"https://dedaub.com/blog/rari-capital-vulnerability/","type":"other","url":""},{"credibility":3,"name":"https://www.certik.com/resources/blog/6LiXVtPQ8q5AQfqOUPnTOS-revisiting-fei-protocol-incident","type":"other","url":""},{"credibility":3,"name":"https://cointelegraph.com/news/rari-fuze-hacker-offered-10m-bounty-by-fei-protocol-to-return-80m-loot","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://blockworks.co/news/a-match-made-in-defi-rari-capital-and-fei-protocol-merge-to-feirari","type":"other","url":""},{"credibility":3,"name":"https://thedefiant.io/news/defi/rari-capital-fei-merger","type":"other","url":""},{"credibility":3,"name":"https://finance.yahoo.com/news/fei-protocol-merges-rari-capital-082614844.html","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://protos.com/tribe-kills-dao-overrules-vote-to-pay-crypto-debt/","type":"other","url":""},{"credibility":3,"name":"https://cointelegraph.com/news/tribe-dao-votes-in-favor-of-repaying-victims-of-80m-rari-hack","type":"other","url":""},{"credibility":3,"name":"https://decrypt.co/110102/tribe-dao-votes-repay-rari-capital-hack-victims-again","type":"other","url":""},{"credibility":3,"name":"https://cryptopotato.com/tribedao-holds-vote-to-repay-rari-capital-hack-victims-for-the-fourth-time/","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.sec.gov/newsroom/press-releases/2024-138","type":"other","url":""},{"credibility":3,"name":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26148","type":"other","url":""},{"credibility":3,"name":"https://www.coindesk.com/policy/2024/09/18/defi-lending-platform-rari-capital-settles-sec-charges","type":"other","url":""},{"credibility":3,"name":"https://charltonsquantum.com/sec-settles-charges-with-rari-capital-and-founders-over-misleading-investors-and-unregistered-broker-activity/","type":"other","url":""},{"credibility":3,"name":"https://www.cryptopolitan.com/sec-charges-rari-capital/","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://dedaub.com/blog/rari-capital-vulnerability/","type":"other","url":""},{"credibility":3,"name":"https://immunebytes.com/blog/rari-capital-re-entrancy-attack-april-2022-detailed-analysis/","type":"other","url":""},{"credibility":3,"name":"https://blog.solidityscan.com/rari-capital-re-entrancy-vulnerability-analysis-25df2bbfc803","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://x.com/RariCapital/status/1744838112373887049","type":"other","url":""},{"credibility":3,"name":"https://protos.com/tribe-kills-dao-overrules-vote-to-pay-crypto-debt/","type":"other","url":""}]}],"sources_used":[],"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.","timeline":[{"date":"2020-07-01","event":"Rari Capital launches its Earn yield-aggregation pools, founded by Jai Bhavnani, Jack Lipstone, and David Lucid","source":""},{"date":"2021-05-08","event":"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","source":""},{"date":"2021-09-01","event":"Rari governance approves minting 10 million additional RGT tokens for DAO treasury","source":""},{"date":"2021-12-01","event":"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","source":""},{"date":"2022-03-03","event":"Security researchers (samczsun, hritzdorf, YSmaragdakis) identify a reentrancy vulnerability in Fuse pools; borrowing paused for 16 hours; funds preserved","source":""},{"date":"2022-04-01","event":"Rari Capital releases Security Upgrade Report claiming reentrancy vulnerabilities have been patched; exitMarket() function remains unprotected","source":""},{"date":"2022-04-30","event":"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","source":""},{"date":"2022-05-01","event":"Tribe DAO snapshot vote passes 75% in favor of covering hack losses; Fei Labs later declares snapshot votes non-binding","source":""},{"date":"2022-05-01","event":"Stolen funds begin flowing through Tornado Cash; attacker does not respond to $10 million bounty","source":""},{"date":"2022-08-19","event":"Fei Labs proposes full wind-down of Tribe DAO; partial repayment cap of $500k-$1M per address proposed, drawing industry criticism","source":""},{"date":"2022-09-01","event":"Tribe DAO's fourth repayment vote passes with 99% in favor of full reimbursement to hack victims; dissolution proceeds","source":""},{"date":"2024-01-10","event":"Rari Capital announces shutdown of frontend applications effective February 29, 2024","source":""},{"date":"2024-09-18","event":"SEC announces settled charges against Rari Capital Inc. and co-founders Bhavnani, Lipstone, and Lucid for misleading investors and acting as unregistered brokers","source":""},{"date":"2024-09-19","event":"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","source":""}]},"v":1}