R0AR Ecosystem Insider Breach Malicious Contract Deployment

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R0AR Ecosystem Logo/Homepage

The R0AR ecosystem, a next-generation DeFi platform powered by the $1R0R token, was targeted in an insider exploit involving a backdoor embedded during the staking contract’s deployment. A rogue developer preset a falsified balance that enabled the extraction of funds via the emergency withdrawal function, ultimately swapping tens of millions of tokens for ETH and laundering them through Tornado Cash. Despite the breach, R0AR responded swiftly by revoking the developer's access, launching a recovery plan, and initiating a token buyback program. Thanks to its unspent presale funds and robust treasury, the platform stabilized quickly, regaining community trust. By April 18, nearly all stolen tokens had been recovered, and the token's value fully rebounded—reportedly surpassing its previous all-time high.

About R0AR Ecosystem

The R0AR ecosystem is a comprehensive, next-generation decentralized finance (DeFi) platform built to empower traders, NFT enthusiasts, and developers. At its core is the $1R0R token, now live on major decentralized exchanges like Uniswap, SushiSwap, PancakeSwap, and Balancer. It aims to fuel everything from staking and farming to governance and exclusive NFT-based utilities. R0AR’s mission is to restore trust and transparency to crypto by delivering a fully integrated suite of tools that combine AI trading, NFT access, and multi-chain interoperability.

Key features of the ecosystem include the R0AR xCHANGE, a cross-chain decentralized exchange supporting ERC-20 tokens, NFT storage, and yield farming without compromising user privacy or security. The R0ARchain, an L2 blockchain built on Optimism, supports scalable and secure DeFi and NFT applications. The R0ARacle AI and R0AR Wallet further enhance the platform by offering intelligent trading support and self-custody asset management across iOS, Android, and browser extensions.

In the NFT space, R0AR leads with the Executive R0AR Society (ERS)—a premium collection of lion-themed NFTs offering holders access to alpha signals, airdrops, and special DeFi privileges. The ecosystem continues to expand rapidly, with upcoming features like R0AR Pay (a crypto card solution), a Web3-native NFT marketplace, and a second generative NFT mint planned into 2026.

With a dedicated team, transparent funding practices, and a roadmap focused on innovation and community engagement, R0AR is building more than a platform—it’s creating a movement. From its AI-powered tools to its gamified financial products, R0AR is shaping the future of Web3 with power, privacy, and profit at its core.

The Reality

One of the developers, who was not part of the core team, had embedded a backdoor at the launch of the protocol.

What Happened

A rogue developer embedding a backdoor in the staking contract’s constructor to preset a fake balance, allowing them to drain funds via the emergency withdrawal function.

Key Event Timeline - R0AR Ecosystem Insider Breach Malicious Contract Deployment

Date	Event	Description
April 15th, 2025 12:45:00 PM MDT	Launch Of Th3 R0ar	Th3 R0ar announces their launch on Twitter/X, with the ticker $1R0R.
April 15th, 2025 8:30:59 PM MDT	First Token Drain Event	The first token draining event swaps 56,777,777.78 $1R0R for 262.5467437 ETH.
April 15th, 2025 8:32:11 PM MDT	Second Token Drain Event	The second token drain transaction swaps 17,280,208.12 $1R0R for 49.29706907 ETH.
April 16th, 2025 1:01:00 AM MDT	Hacken Club Analysis	Hacken Club posts an analysis Hacken Club posts an analysis revealing that the R0AR exploit was meticulously planned, with the attacker’s wallet immediately swapping stolen tokens for ETH and splitting funds across intermediary wallets to obscure the trail. The wallet was originally funded through Tornado Cash, indicating attempts to mask origins. Upon decompiling the staking contract’s constructor bytecode, Hacken discovered a backdoor that preset user.amount for the exploiter’s address, confirming it was embedded at deployment. Hacken notes R0AR’s official stance that this was an internal incident involving a rogue developer, not an external hack.
April 16th, 2025 2:05:00 AM MDT	SlowMist Tweet Posted	SlowMist posts a Security Alert revealing that the root cause of the @th3r0ar exploit was a backdoor embedded in the R0ARStaking contract. During deployment, the contract maliciously altered the user.amount balance of a specific address by directly modifying storage slots. This allowed the attacker to drain all funds from the contract using an emergency withdrawal function.
April 16th, 2025 2:54:00 AM MDT	Token Removal Dump Announced	The R0AR responds to announce the exploit and their plan forward on Twitter/X, clarifying that the incident was not the result of an external hack but caused by a rogue developer unaffiliated with the core team. This individual has since been removed and all access revoked. Emphasizing their financial stability, R0AR reassures the community that ample treasury funds and untouched presale liquidity will be used to restore lost assets. They stress that while the event is unfortunate, it is merely a setback—not a crisis—and reaffirm their commitment to transparency, integrity, and protecting their community.
May 8th, 2025 2:39:00 PM MDT	All Time High Achieved	Th3 R0ar reports that they have now achieved an all-time high following the exploit.

Technical Details

The exploit began with the deployment of a staking pool for the 1R0R/WETH pair on Ethereum, into which staking rewards were deposited. The attacker initially deposited only a minimal “dust” amount into the staking contract. However, a backdoor embedded in the constructor of the smart contract had already preset a large user.amount value for the attacker’s address. This manipulation allowed the attacker to bypass normal staking logic.

Using the emergency withdrawal function, the attacker triggered a massive fund extraction based on the falsified balance. The contract’s logic failed to validate the true stake input, enabling the unauthorized withdrawal. After executing the exploit, the attacker rapidly converted the stolen tokens into ETH.

To obscure the funds’ origin and complicate tracing, the ETH was split across several intermediary wallets. On-chain analysis also revealed that the attacker’s wallet had been initially funded through Tornado Cash, a privacy-focused mixer often used to conceal transactional histories. This confirmed a premeditated effort to hide the exploit trail and avoid detection.

Total Amount Lost

There were two exploit swaps: 56,777,777.78 $1R0R for 262.5467437 ETH 17,280,208.12 $1R0R for 49.29706907 ETH

The total amount lost has been estimated at $780,000 USD.

Immediate Reactions

The R0AR team responded swiftly and publicly to reassure the community. They clarified on Twitter/X that the incident was not the result of an external hack but an internal betrayal by a rogue developer who had embedded a backdoor into the staking contract during deployment. The developer was immediately removed from the project, and all access privileges were revoked.

R0AR emphasized that, unlike many projects, they had not spent any of the presale funds and maintained a strong liquidity position. This allowed them to initiate a recovery plan, including the restoration of liquidity and a token buyback program to stabilize the ecosystem. They urged the community not to panic, stressing that the platform’s integrity and treasury reserves would ensure continuity and recovery. The team reaffirmed their commitment to transparency, long-term growth, and protecting their users, framing the exploit as a “bump in the road” rather than a crisis.

Ultimate Outcome

In the aftermath, R0AR initiated a structured buyback program, repurchasing $1R0R tokens from the open market to stabilize the token's value. This initiative led to a partial recovery, with the token's price increasing by over 250% from its post-exploit lows. As of April 18, approximately 100 million of the stolen tokens had been recaptured, with only two $1R0R tokens remaining unaccounted for. The team also conducted a detailed analysis of the exploit, providing transparency and clarity to the community

Total Amount Recovered

The token valuation has fully recovered.

There do not appear to have been any funds recovered in this case.

Ongoing Developments

The token continues to trade and has reportedly returned past the all-time high.

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.