Re.al Network Halt Puts $500,000 at Risk Due to DAC Inactivity

Investor funds worth approximately $500,000 were put at risk after the Layer-2 network Re.al suddenly stopped working. The network became dysfunctional due to the inactivity of the platform's data availability committee (DAC), which is responsible for sharing off-chain data. This inactivity led to a halt in transactions and raised concerns about potential security vulnerabilities.

Researcher Luca Donno, who works on the L2Beat research platform, highlighted the severity of the situation. He warned that with the current state of the network, a malicious actor could steal all the funds by making changes to the system, and there is no way to prevent this. The DAC structure, which whitelists certain addresses, is crucial for the network's functionality. When it is not working, the network loses its vitality, and transactions come to a halt.

Re.al was developed by the Tangible team behind the USDR stablecoin project, which collapsed in 2023 due to its inability to manage its treasury. USDR lost 50% of its dollar peg, and investors suffered serious losses. After this failure, the team turned to the Re.al project, aiming to tokenize physical assets. Launched in 2024, Re.al quickly raised up to $18 million in investment. However, the total asset value tied to the project has now fallen below $500,000.

Donno noted that users can attempt to withdraw funds via the Ethereum network, but this process will take 12 days. During this time, a malicious actor could steal existing funds by making a malicious update to the system, as the off-chain data that is required to be provided by the DAC is missing from the network, leaving transactions vulnerable.

This incident highlights a larger vulnerability facing the decentralized finance (DeFi) world. The total amount of funds stolen in crypto attacks in 2025 exceeded $2 billion, a 50% increase compared to the entire year of 2024. The abrupt halt in operations has sparked fears that hackers could exploit this vulnerability to steal funds at any moment, drawing parallels to previous high-profile cyberattacks where hackers have successfully infiltrated cryptocurrency networks and stolen significant amounts of digital assets.

In one such case, hackers managed to move all 500,000 stolen Ether, highlighting the sophistication and audacity of these cybercriminals. It is alleged that the hackers used stolen data to access cryptocurrency accounts and steal approximately £9 million. This incident underscores the ongoing threat posed by hackers who exploit vulnerabilities in cryptocurrency networks, often returning the stolen funds but causing significant disruption and financial loss.

The recent attack on the cryptocurrency network is part of a broader trend of cybercrime targeting digital assets. Hackers have been known to exploit vulnerabilities in various platforms, including those used for cryptocurrency trading and storage. The use of ad-based wallet scams and JavaScript exploits has become increasingly common, with reports of $18,000 stolen from 39 victims in a recent incident. These attacks highlight the need for enhanced security measures to protect users' funds and personal information.

The impact of such attacks extends beyond financial losses. The disruption caused by these incidents can erode trust in cryptocurrency networks, potentially deterring new users and investors. The cryptocurrency community has called for greater vigilance and improved security protocols to prevent future attacks. Experts have emphasized the importance of using secure networks and avoiding unsecured connections, which can be exploited by hackers aiming to steal sensitive information and compromise cryptocurrency wallets.

In response to the recent attack, users have been advised to take immediate action to protect their funds. This includes enabling two-factor authentication, using hardware wallets, and being cautious of phishing attempts. The cryptocurrency community has also been urged to report any suspicious activity to the relevant authorities and to stay informed about the latest security threats. By taking these precautions, users can help mitigate the risk of falling victim to cyberattacks and safeguard their digital assets.