Arbitrum Network-based Rodeo Finance Loses $888,000 in DeFi Exploit

Arbitrum Network-based Rodeo Finance lost 472 ether ($888,000) in a DeFi exploit today. The hacker exploited the protocol by manipulating price feeds, which allowed them to steal the funds.

The hacker transferred the stolen funds from Arbitrum to Ethereum, and then exchanged them for various other assets before converting them back to ether. They then funneled the funds through the sanctioned crypto mixer Tornado Cash to obfuscate the trail.

This is the third exploit on the Arbitrum Network in the last four months. In April, Arbitrum-based Sentiment lost $1 million to a DeFi exploit, and in May, Jimbos protocol lost $7.5 million.

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

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.