Rhea Finance Attack Recap: Losses Expand to $18.4 Million, Some Funds Recovered

Rhea Finance released a post-attack report confirming that the vulnerability resulted in an actual loss of approximately $18.4 million, a significant increase from the initial estimate of approximately $7.6 million. The attackers manipulated liquidity using a fake token pool by constructing complex transaction paths. They channeled borrowed assets into a pool under their control while returning only a small amount, rapidly reducing a large number of margin positions to undercollateralized and triggering liquidation, ultimately depleting the protocol's reserves. Currently, approximately $11.2 million has been recovered or frozen, including some USDC and NEAR assets returned by the attackers, and approximately $4.34 million in USDT frozen (with the assistance of Tether).