Rodeo Finance Exploited For $888,000 In Another DeFi Hack on Arbitrum Network

Arbitrum Network-based Rodeo Finance lost 472 ether ($888,000) in a DeFi exploit today.

Blockchain security firm PeckShield revealed that the Rodeo Finance hacker transferred the stolen funds from Arbitrum to Ethereum.

Further analysis revealed that the attacker exchanged the stolen tokens for various other assets before converting them back to ether. 

Hackers once again used Oracle manipulation technique to alter price feeds and exploit the platform out of nearly one million dollars worth of crypto. 

Rodeo Finance exploit is another in a series of DeFi hacks that have happened recently. On July 9, DeFi platform Arcadia became victim of a hack when hackers leveraged a code vulnerability to steal nearly half a million dollars from the protocol’s Ethereum and Optimism vaults.

Correction: the total loss w/ 472 $ETH (~$888K)
The exploiter swapped 285 $ETH for $unshETH and bridged them back to #Arbitrum to continue the hackhttps://t.co/wmlQ7pJlKV

— PeckShieldAlert (@PeckShieldAlert) July 11, 2023

Hackers Move Funds To Tornado Cash

Once the hacker converted the stolen tokens to Ether, they then funneled those funds through the sanctioned crypto mixer Tornado Cash. A transaction mixer like Tornado Cash is used to obfuscate the fund’s trail. 

The Rodeo Finance team has not responded to the incident yet. Rodeo Finance token saw a major dip after the exploit as it dropped nearly 65% in an hour. 

This the third exploit on the Arbitrum Network in the last four months.

As reported earlier in April, Arbitrum-based Sentiment lost $1 million to a DeFi exploit. 

Sentiment hack was followed by another security breach on Arbitrum in May when Jimbos protocol lost $7.5 million.

DeFi Traders Lose $228 Million to Hackers in 3 Months

As per a report by the bug bounty platform Immunefi, hacks across blockchains surged by 63% in the second quarter of 2023 compared to the same period last year. 

The report revealed that DeFi platforms lost $228 million in Q2 across 79 separate hack incidents.

The Atomic Wallet hack last month and the exit scam by the now-defunct Fintoch platform in May contributed to the majority of the losses in the last three months. 

Atomic Wallet was reportedly exploited for $100 million by the infamous hackers from the North Korea-linked Lazarus Group while FinToch pulled off an exit scam with $32 million in user funds.

While attacks on BNB Chain and Ethereum made up 77% of all losses in the last quarter,  Arbitrum network accounted for 12%.