Re.al Blockchain Freeze Puts Investor Funds at Risk, Analyst Warns
Re.al blockchain Faces Major Setback, $500,000 in Investor Funds at Risk
Overview of the Re.al Crisis
The Re.al blockchain experienced a sudden halt last Friday, putting approximately $500,000 of investor capital in jeopardy. This alarming situation was highlighted by Luca Donno, a researcher affiliated with L2Beat, who noted that the layer 2 network’s operations ceased due to inactivity from its data availability committee (DAC).
Implications of the Halt
Donno expressed concerns that the current state of the blockchain makes it easy for malicious actors to propose a state root that could potentially siphon off funds without any means for users to contest such actions. The DAC, which consists of a select group of whitelisted addresses, is crucial for posting off-chain data. Without this data, the blockchain‘s functionality is severely compromised.
This incident raises broader concerns for the decentralized finance (DeFi) sector, particularly as cybercriminal activities have surged in 2025, coinciding with a rebound in cryptocurrency markets. Reports indicate that over $2 billion has been stolen from various crypto projects this year alone, marking a nearly 50% increase compared to the entirety of 2024, according to DefiLlama.
Understanding Re.al
Re.al is the latest initiative from Tangible, the same team that previously launched the USDR stablecoin, which collapsed in 2023 due to mismanagement of its treasury. The stablecoin lost its dollar peg by nearly 50%, resulting in significant losses for token holders. While the team is still working to address the fallout from that failure, they have shifted their focus to Re.al, a project aimed at tokenizing real estate assets.
Launched in 2024, Re.al initially attracted $18 million in investments. However, the project’s asset base has now dwindled to below $500,000, the amount that Donno has warned could be at risk. Users looking to withdraw their funds from the Ethereum network may face a 12-day waiting period, during which time a malicious actor could exploit the situation to execute a harmful upgrade, further jeopardizing the funds.
Conclusion
As of now, Tangible’s team has not responded to inquiries regarding the situation. The unfolding events surrounding Re.al serve as a stark reminder of the vulnerabilities that persist within the DeFi landscape, especially as the sector grapples with increasing threats from cybercriminals.
Osato Avan-Nomayo is a DeFi correspondent based in Nigeria, specializing in coverage of decentralized finance and technology. For tips or insights, reach out via email at [email protected].
