R0AR, a gamified cryptocurrency platform registered in Kingstown, Saint Vincent & The Grenadines, has announced it’s suffering a critical token drain attack. This self-enforced issue is currently hitting its $1R0R token hard. A previously undiscovered vulnerability in the staking contract was at fault for the incident. As punishment, the token’s value tanked by almost 90%. In the wake of this realization R0AR launched their buyback program and began recovery efforts.
It can be a problematic external contractor that’s trusted and ends up exploiting the vulnerability to transfer unauthorized assets out of the staking contract. Getting away with $785,000 The staking contract held around $785,000 in assets. The collision became publicly known on April 21, 2025.
Staking Contract Breach and Immediate Impact
The strategic breach of the R0AR staking contract reverberated across the entire R0AR ecosystem. This contract is central to staking, governance, and calculating rewards for the platform’s users. The vulnerability enabled a malicious external contractor to drain tokens from the smart contract, resulting in a huge loss of value for $1R0R holders. To add to the situation, the attacked staking contract held a large portion of their overall assets, making the attack even more devastating.
“The developer responsible for the smart contract backdoor was not a member of the core team, but a trusted external contractor.” - Dustin Hedrick
In fact, after the token drip occurred, the value of the $1R0R token crashed. This unexpected decrease was alarming to investors and users of the R0AR platform. Repercussions of the attack The attack called into question the physical security measures Veterans Affairs had in place and the vetting process for outside contractors.
Recovery Efforts and Buyback Initiative
In reaction to the crisis, R0AR rapidly developed a buyback program. Making this move was intended to both shore up the token’s price and assure continued users and wealth in the platform. As a result, the token experienced a very partial price recovery, thanks largely to the buyback program. According to a Bloomberg News report on April 18, the company had so far recaptured around 100 million of the hacked tokens.
The company claimed the remaining two $1R0R tokens were still unaccounted for, proving their unprecedented recovery strategy had worked. The value of the $1R0R token has rebounded more than 250% from its lows following the incident. We believe this dramatic increase is the unmistakable sign of a market sentiment turnaround.
Looking Ahead
R0AR’s rapid response and containment efforts distinguished it from other cases of exploited smart contract vulnerabilities. The platform quickly moved to address the exploit, which was enough to mitigate the damage. They made amends to users who were harmed, which is critical in mitigating long-term damage.
“The project has been in development for several years, and this moment, while difficult, represents a starting point for strategic rebuilding,” - Dustin Hedrick
This event underscores the dangers that come with decentralized finance. It does shine a light on the importance of robust security requirements.
