This was actually the second attack to impact Rodeo Finance in a single week. On July 5, the same day as their public token launch, the project was exploited for around $90,000 thanks to a bug in a smart contract.
Only eleven days later, on June 27, the team boasted that the project "has grown to over $1m TVL in 2 working days". An hour after that, they announced that they would be suspending the protocol and beginning an immediate investigation into an apparent theft. Themis boasts in its documentation that "security is the highest priority" of the project, and lists multiple audits from PeckShield.
An attacker was apparently able to exploit the project, draining around 220 Themis-wrapped ETH (nominally worth ~$417,000). Due to liquidity issues, they could only swap these for around 94 ETH (~$178,000) and almost $190,000 in stablecoins, for a total haul of around $368,000.
Roughly an hour after the attack, the project tweeted that they were aware of the attack, and had paused all markets. On June 19 the project sent a message to the attacker, pleading with them to return the funds and threatening: "There are criminal organizations following the same evidence trails we are. This isn't going away until you return funds. We are your best option out of this."
The protocol was paused following the attack. 0VIX later tweeted that they had been collaborating with security firms to investigate the hack, and had offered to let the attacker keep $125,000 if they returned the remaining funds in a bug bounty agreement that would also involve 0VIX not pursuing legal action.
The attacker quickly bridged the tokens to the Ethereum chain and swapped them for ETH and USDC, collectively worth around $1.7 million. The price of ALBT plunged around 50%, and the BEUR Euro-pegged stablecoin significantly lost its peg.
Security firm PeckShield initially suggested the issue might have been with QiDAO, which creates the $MAI stablecoin. The vulnerability is not with their project, although it's possible that the theft will impact the collateralization of their stablecoin.
This attack was executed similarly to the Mango Markets exploit a week prior. Moola Market tweeted that they had "contacted law enforcement and taken steps to make it difficult to liquidate the funds. We are willing to negotiate a bounty payment in exchange for returning the funds within the next 24 hours." The attacker did eventually return 93% of the funds, keeping the remaining $588,000 as a "bug bounty".
Mango Markets posted on Twitter to urge users not to deposit into the project, and asked the hacker to contact them "to discuss a bug bounty". The hacker had their own plans, instead submitting a governance proposal in which they would return $46 million of the stolen funds (keeping $70 million) in exchange for a promise that the protocol would not try to freeze the assets or pursue criminal charges. The hacker then used their 32 million governance tokens to vote in support, but ultimately were not able to get the proposal to pass. A different proposal with largely the same terms, but which left the attacker with only $47 million of the stolen funds, passed shortly after.