The Layer-2 Re.al network has halted operations, jeopardizing around $500,000 of investor funds. Researcher Luca Donno reported the issue caused by inactivity of the data availability committee.
Cause of Network Failure
According to Luca Donno, blockchain production stopped on Friday due to the inactivity of the Data Availability Committee (DAC), responsible for sharing off-chain data in the Re.al project. When this structure fails, the network loses vitality and transactions grind to a halt.
Warning About Potential Vulnerabilities
Luca Donno, who works on the L2Beat research platform, highlighted a possible security vulnerability, stating, "With the current state of the network, a malicious person can steal all the funds by making changes to the system, and there is no way to prevent this."
History of the Re.al Project and Its Current Status
Re.al was developed by the Tangible team, formerly involved in the USDR stablecoin project. Launched in 2024, Re.al quickly raised up to $18 million in investment to tokenize physical assets. However, the total asset value connected to the project has now dropped below $500,000. Users can attempt to withdraw funds via the Ethereum network, but this process will take 12 days, during which time existing funds are at risk of being stolen.
The situation with the Re.al network underscores broader vulnerabilities within the decentralized finance (DeFi) sector. The total amount of funds stolen in crypto attacks in 2025 has significantly increased, raising concerns among experts.
