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Rho Markets attacker offers refund and says it is not a hacker attack

Theo

Blockchain detective ZachXBT says the attacker who stole funds from Scroll-backed lending protocol Rho Markets is ready to return all funds.

Specifically, the attacker wrote an on-chain message pledging to return all funds and claiming that his was not an exploit or hack. In a post following the incident, blockchain investigator ZachXBT noted that the attacker appeared to be a grey hat or white hat and that the funds were recoverable. The exploiter has a lot of presence on centralized exchanges, ZachXBT noted.

Not long after, the attacker communicated with Rho via an on-chain message.

The message read:

“Our MEV bot profited from a configuration error in Rho Markets’ price oracle. We understand that these funds belong to the users and are ready to return them in full. However, first of all, we would like to point out that this was not an exploit or hack, but a configuration error on your part. Also, please inform us about the measures you will take to prevent such incidents in the future,” they wrote.

Rho Markets suspends platform during investigation

On Monday, blockchain security firm Cyvers Alerts had already indicated that Rho Markets had fallen victim to an attack that had affected the protocol’s USDC and USDT pools.

The incident allowed the attacker to move $7.6 million worth of user funds held on multiple chains.

Rho and Scroll, an Ethereum Layer 2 protocol, confirmed the attack and noted “unusual activity.” As they began investigating, the Rho Markets team announced a network outage.

“Platform features will be re-enabled once everything is back to normal. Thank you for your understanding and patience,” Rho Markets wrote.

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