DeFi
MEV Robot to Raise $7.5 Million if Rho Markets Admits Oracle Error
Crypto assets worth $7.5 million were lost when Rho Markets, a decentralized finance (DeFi) lending platform on Ethereum L2 Scroll, was hacked.
However, the responsible MEV robot operator is willing to return the funds – provided that Rho Markets admits its mistakes.
The suspicious activity was Underlines by a user on X (formerly Twitter), who noted that the platform was out of the stablecoins USDC and USDT. The user linked to the alleged attacker addresswhich shows a gain of 7.5 million dollars in the last hours.
Learn more: Sifu’s UwU Lend Reportedly Hacked for $20 Million, Curve’s Egorov Among Those Affected
Half an hour after the initial alert, Rho Markets announcement ‘unusual activity” on the platform, which has been suspended while the issue is investigated. “Most pools are safe, so there is no need to worry,” they added.
The Scroll Network’s X account confirmed that the exploit was “application-specific,” informing users that it had decided to temporarily delay the chain’s finalization. The network is now operating normally.
While the exact nature of the exploit has yet to be confirmed by the team, blockchain security firm Cyvers suspected the root cause is “Access control to Oracle by malicious actor.’ It was later confirmed by BlockSec which noted “a strange transfer of ownership” of the oracle contract.
The incident quickly began to look like a happy ending. Noting the attacker’s exposure to centralized exchanges, on-chain sleuth ZachXBT suspected that there is “a good chance that it will be recovered and that it will be a gray or white hat.”
Shortly after, the hunch proved correct, as the attacker sent a chain message message on the Ethereum mainnet. The bot operator claims to be “willing to fully return” the funds, provided the team admits to “a misconfiguration on [Rho Markets’] END.’
In addition to admitting the mistake, the white hat asks Rho Markets to suggest what it “will do to prevent this from happening again.”
Learn more: Compound Finance and Celer Network websites compromised by front-end attacks
According to DeFi analytics platform DefiLlamaRho Markets is a “fork” of long-established Compound Finance, and holds approximately $43 million in assets.
The compound itself was the focus of the last week panic above the wave of front-end hacking incidents on popular DeFi platforms.
Got a tip? Send us an email or ProtonMail. For more up-to-date information, follow us on X, Instagram, Blue skyAnd Google Newsor subscribe to our Youtube channel.