Rodeo Finance mined for $888,000 in another Arbitrum Network DeFi hack

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

Blockchain security company 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’s manipulation technique to alter prices and exploit the platform with nearly $1 million worth of crypto.

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

Hackers move funds to Tornado Cash

Once the hacker converted the stolen tokens into Ether, he funneled those funds through the licensed crypto mixer Tornado Cash. A transaction mixer like Tornado Cash is used to obfuscate the fund trace.

The Rodeo Finance team has yet to respond to the incident. The Rodeo Finance token experienced a huge drop after the exploit, as it dropped almost 65% within an hour.

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

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

The sentiment hack was followed by another security breach at Arbitrum in May when the Jimbos protocol lost $7.5 million.

DeFi Traders Lose $228M to Hackers in 3 Months

According to a report from the bug bounty platform immunehacks through blockchains increased 63% in the second quarter of 2023 compared to the same period last year.

The report revealed that DeFi platforms lost $228 million in the second quarter across 79 separate hacking incidents.

Atomic Wallet last month and the now-defunct Fintoch platform exit scam in May contributed to most of the losses in the past three months.

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

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