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Rho Markets hit with a $7.5 million potential exploit, Scroll blockchain halted

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Blockchain sleuth suggests possibility of fund recovery due to drainer's exchange exposure.

Golden Ethereum symbol with red warning sign, representing Rho Markets exploit

Key Takeaways

  • Rho Markets lost over $7.5 million in a potential exploit on the Scroll blockchain.
  • The responsible parties claim it was due to a price oracle misconfiguration, not a hack.

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Scroll-based money market Rho Markets lost over $7.5 million after being hit with a potential exploit. The wallet behind the incident drained over 2,203 ETH in nine minutes. The team at Scroll decided to temporarily delay the blockchain finality, which is the assurance that a transaction is immutable, to assess if the breach was application-specific. 

Blockchain finality was resumed after concluding that the potential exploit was contained on Rho Markets’ platform. Notably, blockchain sleuth ZachXBT highlighted an on-chain message from the agents responsible for the incident, explaining that an MEV bot profited from a “price oracle misconfiguration.”

“Hello RHO team, our MEV bot have profited from your price oracle misconfiguration. We understand that the funds belong to the users and are willing to fully return. But first we would like you to admit that it was not an exploit or a hack, but a misconfiguration on your end. Also, please provide what are you going to do to prevent it from happening again,” said the message.

Moreover, ZachXBT added that the address responsible for draining has significant exposure to centralized exchanges, which means “there is a good probability” that the agents are gray or white hat hackers, and the funds will be recovered. Over the past 24 hours, Rho Markets lost nearly $16 million in total value locked.

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