DeFi
Ethereum DeFi platform raises $7.6M after meeting exploiter demands
Decentralized finance (DeFi) protocol Rho Markets informed users on Friday that $7.6 million in compromised user funds are now flowing into the lending platform.
“We are pleased to announce that the issue has been successfully resolved,” the project said. wrote on Twitter (aka X), stressing that no user funds were lost. “We are currently reallocating the funds to the borrowing pools.”
Earlier today, an entity sent a message on-chain, demanding that Rho Markets come up with a plan to fix the software issues that allowed it to siphon off a significant amount of crypto.
“We understand that the funds belong to the users and are ready to return them in full,” the entity said. wrote“But first we would like you to admit that this was not an exploit or a hack, but a misconfiguration on your end.”
Rho Markets, which exists on the Ethereum scaling network Scroll, warned on Twitter (aka X) hours before its platform was put on hiatus. Investigating reports of unusual activity, the project holding $40 million in crypto assets stop the activity quickly.
A market in Rho dashboard The company said at the time that a total of $1.1 million and $2.3 million worth of Tether and USDC stablecoins had been “borrowed” on the platform, in amounts greater than their listed supply. The same could be said of wstETH, a wrapped version of Ethereum staked by Lido, of which $6 million had been borrowed.
On Twitter, scroll down advanced users to “temporarily revoke all approvals,” preventing decentralized applications from accessing users’ funds. Before that, the account declared that Scroll had temporarily delayed network completion, suggesting that transactions on the network would take longer to process.
According to the entity that stole users’ funds, the price oracles that communicate cryptocurrency prices to Rho Markets’ protocol were implemented incorrectly. The apparent error allowed a bot to profitably order trades.
An hour after the entity made its on-chain demands, approximately $7.6 million worth of Ethereum tied to the exploit was transferred to another wallet.
Scroll and Rho Markets did not immediately respond to a request for comment. Decrypt.
Rho Markets wrote afterward that it would take “three carefully planned steps”: assess which accounts were providing funds when its oracle went down, replenish funds in affected areas, and restore its normal lending functions.
“Please rest assured, our team is diligently implementing these measures to restore normalcy,” the project added, emphasizing its goal of “preserving the interests of our valued users.”
Crypto Detective ZachXBT wrote On Twitter, he said there was a “good chance” the funds would be recovered, as the entity responsible for Friday’s exploit has “a ton of exposure to centralized exchanges.” Since that would make it easier for law enforcement to identify the potential attacker, he said the entity was likely taking an ethical approach.
While $7.6 million is a significant sum, it represents only a small portion of the overall assets locked in decentralized applications on Scroll, which have swelled to around $640 million from $174 million a month ago, according to DefiLlama. data.
The scaling solution for Ethereum launched its public mainnet last October. Several months before that, Scroll’s creators had raised $50 million in an undisclosed funding round led by Polychain Capital, according to CryptoRang.
Friday wasn’t the first time an Ethereum scaling network was hit due to concerns about users losing their crypto. Last month, Linea froze all transactions on its network to prevent attackers from stealing more crypto from decentralized exchange Velcore. It worked.
Edited by Ryan Ozawa.