Rhea Finance reported a security breach on April 16, where attackers exploited a flaw in the slippage protection mechanism of its margin trading module. The attackers bypassed the protection logic by constructing a chain swap path with intermediate asset reuse, resulting in the transfer of approximately $18.4 million from the protocol's reserve pool. Following the attack, the perpetrators have returned around $3.359 million in USDC and $1.564 million in NEAR. Additionally, approximately $4.34 million in USDT has been frozen. In response, Rhea Finance has suspended related lending contracts to facilitate asset recovery and tracking. The team is collaborating with exchanges and other parties to investigate the incident and develop a compensation plan.