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← LeadBlock's Morpho Blue Marketreviewed 2026-09-07 · 35 claims checked

Fact-check findings

What an automated fact-checker found when it re-read LeadBlock's Morpho Blue Market against the sources the page cites. Only the most recent review is shown.

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These findings are produced by an automated reviewer, and its results vary between runs: the same page, checked three times on the same day, came back with 15%, 20% and 34% of its claims disputed, mostly because each run extracted a different number of claims. Treat what follows as leads, not rulings.

“Disputed” means the reviewer could not reconcile the claim with the evidence it cited. It does not mean the claim is false. “Unverifiable” means no reachable source settled it either way.

Nothing here changes the page on its own. A proposed correction is applied only after a human moderator approves it; until then the page reads as it did when reviewed.

disputed 5unverifiable 4link rot 2partially supported 2confirmed 227 corrections pending · 0 applied

disputed

5 claims

The reviewer could not reconcile the claim with the evidence it cited. This is a lead, not a ruling that the claim is false.

  1. #3[disputed][awaiting moderator]in section: Overview of LeadBlock Partners
    “LeadBlock closed its second fund, LeadBlock Fund II, at $150 million in November 2022.”
    reviewerLeadBlock closed its second fund, LeadBlock Fund II, at $150 million in November 2022.The page's own cited source contradicts the claim: it describes a first close toward a $150M target, with actual capital raised described as 'tens of millions,' not a $150M close. No later source was found confirming a final close at $150M.
    Proposed correction (not yet applied)
    LeadBlock announced the first close of its second fund, LeadBlock Fund II, which has a target value of $150 million, in November 2022.
    citedwww.theblock.co/post/184000/european-cry…n-fund-exclusive
  2. #5[disputed][awaiting moderator]in section: Overview of LeadBlock Partners
    “LeadBlock also participated as a limited partner in Morpho's $50 million private-sale funding round led by Ribbit Capital in August 2024.”
    reviewerLeadBlock participated as a limited partner in Morpho's $50 million private-sale round led by Ribbit Capital in August 2024.The investor in Morpho's raise was the distinct joint-venture entity LeadBlock Bitpanda Ventures, not LeadBlock Partners itself as the sentence implies (also, 'limited partner' is imprecise terminology for a strategic/token round investor). Notably the page's own timeline entry for this event correctly uses 'LeadBlock Bitpanda Ventures.'
    Proposed correction (not yet applied)
    LeadBlock Bitpanda Ventures, a joint-venture fund co-managed by LeadBlock, also participated in Morpho's $50 million private-sale funding round led by Ribbit Capital in August 2024.
    citedmorpho.mirror.xyz/bgUB21hQoy-w7T9je7sEpg…MMkwbO3sFJmWAwGw
  3. #18[disputed][awaiting moderator]in section: Risk Curation Responsibilities and Morpho Protocol Response
    “Following the incident, Morpho added risk warnings to its user interface, alerting depositors of possible risks associated with specific markets and, in some cases, requiring opt-in acknowledgment before proceeding.”
    reviewerFollowing the incident, Morpho added risk warnings to its UI, alerting depositors of possible risks and, in some cases, requiring opt-in acknowledgment.The page's own cited source shows risk warnings were introduced in May 2024, predating the October incident, directly contradicting the causal 'following the incident' framing.
    Proposed correction (not yet applied)
    Morpho had already introduced risk warnings to its user interface several months before the incident, alerting depositors of possible risks associated with specific markets and, in some cases, requiring opt-in acknowledgment before proceeding.
    citedmorpho.org/blog/introducing-risk-warning…nless-interface/
  4. #29[disputed][awaiting moderator]in the timeline
    “LeadBlock Partners closes Fund II at $150 million, backed by family offices, hedge fund managers, and financial institutions.”
    reviewer2022-11: LeadBlock Partners closes Fund II at $150 million, backed by family offices, hedge fund managers, and financial institutions.Same underlying error as the Overview section: conflates a first close/target with a completed $150M close. The backer categories themselves are accurately quoted from the source.
    Proposed correction (not yet applied)
    LeadBlock Partners announces the first close of Fund II, targeting $150 million, backed by family offices, hedge fund managers, and financial institutions.
  5. #35[disputed][awaiting moderator]in the timeline
    “Morpho Labs posts on X (formerly Twitter) distinguishing the risk curation failure from any underlying protocol vulnerability; Morpho subsequently introduces opt-in risk warnings on its interface for flagged markets.”
    reviewer2024-10-14: Morpho Labs posts on X distinguishing the risk-curation failure from a protocol vulnerability; Morpho subsequently introduces opt-in risk warnings for flagged markets.The X post date (Oct 14, 2024) is confirmed, but the claim that risk warnings were 'subsequently' introduced is contradicted by Morpho's own blog post announcing that feature in May 2024, five months earlier.
    Proposed correction (not yet applied)
    Morpho Labs posts on X (formerly Twitter) distinguishing the risk curation failure from any underlying protocol vulnerability; Morpho had already introduced opt-in risk warnings on its interface for flagged markets months earlier, in May 2024.

unverifiable

4 claims

No source the reviewer could reach confirms or contradicts the claim.

  1. #7[unverifiable][awaiting moderator]in section: Overview of LeadBlock Partners
    “The firm's team background includes traditional finance experience at Goldman Sachs, Rothschild, Barclays, and GE Capital.”
    reviewerThe firm's team background includes traditional finance experience at Goldman Sachs, Rothschild, Barclays, and GE Capital.Goldman Sachs background is independently confirmed elsewhere, but no source was found confirming Rothschild, Barclays, or GE Capital experience for any named team member.
    citedleadblockpartners.com/
  2. #21[unverifiable][awaiting moderator]in section: LeadBlock USDC RWA Vault — Ongoing Operations
    “however, mTBILL tokens are not registered under U.S. securities laws and cannot be offered to U.S. persons.”
    reviewermTBILL tokens are not registered under U.S. securities laws and cannot be offered to U.S. persons.Plausible boilerplate for a tokenized RWA product, but could not be independently confirmed given the dead source link.
    citedblog.midas.app/midas-and-leadblock-pione…-on-morpho-blue/
  3. #26[unverifiable][awaiting moderator]in section: ZachXBT Flag and Community Attention
    “ZachXBT, a pseudonymous blockchain investigator and open-source intelligence researcher known for investigating cryptocurrency fraud and exploits, flagged LeadBlock's Morpho Blue market for inclusion in the AVOID.NET risk intelligence database.”
    reviewerZachXBT flagged LeadBlock's Morpho Blue market for inclusion in the AVOID.NET risk intelligence database.No public, independently accessible post or thread could be found substantiating that ZachXBT specifically flagged this entity; the page itself acknowledges this uncertainty in the same section.
  4. #27[unverifiable][awaiting moderator]in section: ZachXBT Flag and Community Attention
    “No regulatory action (SEC, CFTC, or DOJ) has been identified in connection with LeadBlock Partners or the Morpho Blue market incident.”
    reviewerNo regulatory action (SEC, CFTC, or DOJ) has been identified in connection with LeadBlock Partners or the Morpho Blue market incident.Consistent with available public reporting, which shows no enforcement action, but a negative claim like this cannot be fully verified through search alone.

partially supported

2 claims

The cited evidence supports part of the claim but not all of it.

  1. #14[partially supported][awaiting moderator]in section: Disputed Loss Outcome and Lender Impact
    “Morpho Blue's protocol architecture isolates risk by market: when all collateral in a position is depleted but debt remains, the protocol distributes the resulting bad debt among all lenders in that specific market by reducing total borrow and supply asset balances proportionally.”
    reviewerMorpho Blue's architecture isolates risk by market; when collateral is depleted but debt remains, bad debt is distributed among all lenders in that market by reducing total borrow/supply balances proportionally.The general point -- that losses are contained to the specific isolated market -- is accurate, but the page presents proportional automatic distribution as a uniform protocol-level guarantee, when Morpho's own documentation describes vault-dependent mechanics that can require manual intervention rather than automatic socialization.
    citeddocs.morpho.org/curate/tutorials-v1/bad-debt/
  2. #22[partially supported][awaiting moderator]in section: LeadBlock USDC RWA Vault — Ongoing Operations
    “The underlying Morpho Blue smart contracts have been audited by Spearbit, ChainSecurity, and others, with formal verification by Certora.”
    reviewerThe underlying Morpho Blue smart contracts have been audited by Spearbit, ChainSecurity, and others, with formal verification by Certora; these audits do not extend to curator-level configurations.The general claim about the audit roster is accurate per Morpho's own audits page, but the specific URL cited on the page only supports the ChainSecurity portion of the claim, not Spearbit or Certora.
    citedwww.chainsecurity.com/security-audit/morpho-vault-v2

confirmed

22 claims

The cited evidence supports the claim as written.

  1. #1[confirmed][no action needed]in section: Overview of LeadBlock Partners
    “LeadBlock Partners is a London and Paris-based venture capital firm founded in 2019 by former Goldman Sachs employees David Chreng-Messembourg, Baptiste Cota, and Jean-Marc Puel.”
    reviewerLeadBlock Partners is a London/Paris-based VC founded in 2019 by ex-Goldman Sachs employees David Chreng-Messembourg, Baptiste Cota, and Jean-Marc Puel.Multiple independent sources confirm the founders' names, Goldman Sachs background, and 2019 founding date.
    citedwww.theblock.co/post/184000/european-cry…n-fund-exclusiveleadblockpartners.com/
  2. #2[confirmed][no action needed]in section: Overview of LeadBlock Partners
    “The firm focuses exclusively on the digital assets and blockchain ecosystem with an emphasis on institutional and corporate blockchain adoption.”
    reviewerThe firm focuses exclusively on digital assets/blockchain, emphasizing institutional and corporate adoption.General positioning claim, consistent with the firm's self-description and third-party coverage.
    citedleadblockpartners.com/
  3. #4[confirmed][no action needed]in section: Overview of LeadBlock Partners
    “Its portfolio includes investments in Yuga Labs, Bitpanda, BlockFi, and Talos.”
    reviewerLeadBlock's portfolio includes investments in Yuga Labs, Bitpanda, BlockFi, and Talos.Independently confirmed via portfolio-tracking sources.
    citedleadblockpartners.com/
  4. #6[confirmed][no action needed]in section: Overview of LeadBlock Partners
    “In addition to its venture activities, LeadBlock acts as a risk curator on the Morpho Blue lending protocol, where curators are responsible for configuring market allocations, supply caps, and oracle parameters for MetaMorpho vaults.”
    reviewerLeadBlock acts as a risk curator on Morpho Blue, responsible for configuring market allocations, supply caps, and oracle parameters for MetaMorpho vaults.Consistent with Morpho Blue's documented curator role.
    citedforum.morpho.org/t/leadblock-rwa-backed-usdc-vault/507
  5. #8[confirmed][no action needed]in section: Oracle Misconfiguration Incident — October 2024
    “This 12-decimal gap caused the oracle to value PAXG at approximately $2.6 trillion per token instead of its actual market price, inflating PAXG's collateral value by a factor of 10^12.”
    reviewerOn October 13, 2024, the PAXG/USDC market oracle SCALE_FACTOR was misconfigured (12-decimal gap between PAXG's 18 decimals and USDC's 6), inflating PAXG to ~$2.6 trillion and enabling a $350 deposit to borrow ~$230,000 USDC.Well-corroborated across multiple independent security-firm writeups and press coverage.
    citedforum.morpho.org/t/retrospective-paxg-us…onfiguration/891medium.com/coinmonks/decoding-morphoblue…oit-6296565ced40blog.solidityscan.com/morphoblue-hack-an…is-638b685f8bf2/blog.verichains.io/p/morpho-protocol-market-oracle-price
  6. #9[confirmed][no action needed]in section: Oracle Misconfiguration Incident — October 2024
    “The exploit transaction hash is 0x256979ae169abb7fbbbbc14188742f4b9debf48b48ad5b5207cadcc99ccb493b and the attacker's address is 0x02DBE46169fDf6555F2A125eEe3dce49703b13f5.”
    reviewerThe exploit transaction hash is 0x256979ae169abb7fbbbbc14188742f4b9debf48b48ad5b5207cadcc99ccb493b, attacker address 0x02DBE46169fDf6555F2A125eEe3dce49703b13f5, and vulnerable contract 0xBBBBBbbBBb9cC5e90e3b3Af64bdAF62C37EEFFCb.On-chain identifiers match a cited third-party security writeup exactly and are correctly formatted.
    citedblog.solidityscan.com/morphoblue-hack-an…is-638b685f8bf2/
  7. #10[confirmed][no action needed]in section: Oracle Misconfiguration Incident — October 2024
    “The total reported loss from the incident was approximately $230,000 USD.”
    reviewerThe total reported loss from the incident was approximately $230,000 USD.Some sources (The Defiant) cite a figure as high as $250K, but $230K is the most commonly repeated figure and matches the page's primary cited sources.
    citedblog.solidityscan.com/morphoblue-hack-an…is-638b685f8bf2/www.bitget.com/news/detail/12560604270503
  8. #11[confirmed][no action needed]in section: Oracle Misconfiguration Incident — October 2024
    “LeadBlock's post-incident retrospective, published on the Morpho governance forum on October 15, 2024, attributed the error to an oracle provider rather than LeadBlock's own configuration process, though LeadBlock accepted responsibility for not catching the error before deployment.”
    reviewerLeadBlock's retrospective, published October 15, 2024, attributed the error to an oracle provider rather than LeadBlock's own process, while accepting responsibility for not catching it before deployment.Directly confirmed by the primary-source forum retrospective.
    citedforum.morpho.org/t/retrospective-paxg-us…onfiguration/891
  9. #12[confirmed][no action needed]in section: Disputed Loss Outcome and Lender Impact
    “LeadBlock's public retrospective on the Morpho governance forum stated that the borrow was 'fully repaid to the vault and the lender' and that 'no user funds were lost.'”
    reviewerLeadBlock's retrospective stated the borrow was 'fully repaid to the vault and the lender' and that 'no user funds were lost.'Direct quote confirmed against primary source.
    citedforum.morpho.org/t/retrospective-paxg-us…onfiguration/891
  10. #13[confirmed][no action needed]in section: Disputed Loss Outcome and Lender Impact
    “According to PGov's analysis, an initial borrower maintained approximately 17,800 USDC borrowed using minimal collateral, and direct lenders holding approximately 95,000 USDC in the affected market faced potential bad debt exposure — with at least three borrower addresses using roughly $150 in collateral.”
    reviewerPGov's analysis found an initial borrower held ~17,800 USDC borrowed with minimal collateral, and direct lenders holding ~95,000 USDC faced potential bad debt, with at least three borrower addresses using ~$150 in collateral.Figures closely match the primary-source forum thread; the page accurately represents a contested community critique.
    citedforum.morpho.org/t/retrospective-paxg-us…onfiguration/891
  11. #15[confirmed][no action needed]in section: Disputed Loss Outcome and Lender Impact
    “The PAXG/USDC market represented approximately 4% of LeadBlock's vault allocation at the time of the incident.”
    reviewerThe PAXG/USDC market represented approximately 4% of LeadBlock's vault allocation at the time of the incident.Directly confirmed by the primary source.
    citedforum.morpho.org/t/retrospective-paxg-us…onfiguration/891
  12. #16[confirmed][no action needed]in section: Risk Curation Responsibilities and Morpho Protocol Response
    “Morpho Blue is a permissionless protocol: any party can deploy a market with any combination of loan asset, collateral asset, liquidation loan-to-value ratio, oracle, and interest rate model.”
    reviewerMorpho Blue is a permissionless protocol allowing deployment of markets with any oracle/asset/LLTV combination; curators bear responsibility for market selection, oracle configuration, supply caps, and risk monitoring.Accurately reflects widely-documented Morpho Blue protocol design.
    citeddocs.morpho.org/learn/resources/risks/
  13. #17[confirmed][no action needed]in section: Risk Curation Responsibilities and Morpho Protocol Response
    “Morpho Labs stated: 'The Morpho protocol provides permissionless infrastructure that enables an open market for risk curation. While errors at the risk curation layer may occasionally occur, the underlying protocol remains secure and resilient.'”
    reviewerMorpho Labs stated on X (Oct 14, 2024) that the exploit was a risk-curation-layer failure, not a smart contract vulnerability, quoting: 'The Morpho protocol provides permissionless infrastructure that enables an open market for risk curation...'Quote verified indirectly through secondary sources quoting the same tweet verbatim; the tweet itself could not be directly fetched due to access restrictions, not evidence of deletion.
    citedx.com/MorphoLabs/status/1845746698393391167
  14. #19[confirmed][no action needed]in section: Risk Curation Responsibilities and Morpho Protocol Response
    “LeadBlock disclosed it implemented 'new processes during market creation and testing to catch such issues before launch.'”
    reviewerLeadBlock disclosed it implemented 'new processes during market creation and testing to catch such issues before launch.'Direct quote confirmed verbatim against the primary source.
    citedforum.morpho.org/t/retrospective-paxg-us…onfiguration/891
  15. #20[confirmed][no action needed]in section: LeadBlock USDC RWA Vault — Ongoing Operations
    “At launch, the primary collateral asset was mTBILL, a tokenized Treasury bond product issued by Midas and described as backed 1:1 by short-dated U.S. Treasuries through BlackRock's Treasury Bond ETF.”
    reviewerLeadBlock's USDC RWA vault (0x4cA0E178c94f039d7F202E09d8d1a655Ed3fb6b6) launched with mTBILL (a Midas tokenized Treasury product) as primary collateral, described as backed 1:1 by short-dated U.S. Treasuries via a BlackRock ETF.Confirmed by the primary Morpho governance forum announcement of the vault.
    citedforum.morpho.org/t/leadblock-rwa-backed-usdc-vault/507blog.midas.app/midas-and-leadblock-pione…-on-morpho-blue/
  16. #25[confirmed][no action needed]in section: ZachXBT Flag and Community Attention
    “ZachXBT has been active since 2021 and joined Paradigm as an incident response advisor in February 2025.”
    reviewerZachXBT is a pseudonymous blockchain investigator active since 2021 who joined Paradigm as an incident response advisor in February 2025.Independently corroborated by contemporary press coverage.
    citeden.wikipedia.org/wiki/ZachXBT
  17. #28[confirmed][no action needed]in the timeline
    “LeadBlock Partners founded in London by former Goldman Sachs employees David Chreng-Messembourg, Baptiste Cota, and Jean-Marc Puel, focusing on digital assets and blockchain venture capital.”
    reviewer2019: LeadBlock Partners founded in London by the three named ex-Goldman employees.Matches confirmed founding facts.
  18. #30[confirmed][no action needed]in the timeline
    “Morpho raises $50 million in a private sale round led by Ribbit Capital; LeadBlock Bitpanda Ventures participates as a backer.”
    reviewer2024-08: Morpho raises $50 million led by Ribbit Capital; LeadBlock Bitpanda Ventures participates as a backer.This timeline entry correctly names the specific joint-venture entity, unlike the Overview section's paraphrase.
  19. #31[confirmed][no action needed]in the timeline
    “LeadBlock Partners establishes role as risk curator on Morpho Blue, launching its USDC RWA MetaMorpho vault (0x4cA0E178c94f039d7F202E09d8d1a655Ed3fb6b6) in collaboration with Midas, allocating against mTBILL collateral.”
    reviewer2024: LeadBlock establishes risk-curator role on Morpho Blue and launches its USDC RWA MetaMorpho vault (0x4cA0E178c94f039d7F202E09d8d1a655Ed3fb6b6) with Midas, allocating against mTBILL.Consistent with the primary forum announcement.
  20. #32[confirmed][no action needed]in the timeline
    “Oracle misconfiguration in the LeadBlock-curated PAXG/USDC market on Morpho Blue is exploited. An attacker deposits $350 of PAXG and borrows approximately $230,000 USDC by exploiting an inflated oracle price of $2.6 trillion per PAXG unit caused by a 12-decimal SCALE_FACTOR error. Attacker address: 0x02DBE46169fDf6555F2A125eEe3dce49703b13f5.”
    reviewer2024-10-13: Oracle misconfiguration exploited; attacker deposits $350 PAXG and borrows ~$230,000 USDC via inflated $2.6T oracle price from a 12-decimal SCALE_FACTOR error; attacker address 0x02DBE46169fDf6555F2A125eEe3dce49703b13f5.Consistent with section-level findings already verified above.
  21. #33[confirmed][no action needed]in the timeline
    “LeadBlock publishes a retrospective on the Morpho governance forum acknowledging the oracle misconfiguration, stating the error was introduced by an oracle provider, claiming all borrowed funds were repaid, and disclosing new internal testing processes for future market creation.”
    reviewer2024-10-15: LeadBlock publishes retrospective acknowledging the misconfiguration, attributing it to an oracle provider, claiming full repayment, and disclosing new testing processes.Confirmed against the primary source, matching earlier section-level verification.
  22. #34[confirmed][no action needed]in the timeline
    “Multiple DeFi security firms — including QuillAudits, SolidityScan, and Verichains — publish technical post-mortems on the exploit, detailing on-chain transactions and the decimal mismatch root cause.”
    reviewer2024-10-18: QuillAudits, SolidityScan, and Verichains publish technical post-mortems detailing on-chain transactions and decimal mismatch root cause.One of the three named publications' date is independently pinned to Oct 18, 2024; the other two are confirmed as October 2024 publications on the same incident without an independently verified exact day.
How this fits together. The reviewer reads the published page and its cited sources and records one finding per claim. A human moderator decides whether each proposed correction is applied; those decisions, and the score changes they cause, appear in the audit log. Earlier review runs are not shown here; only the latest reflects the page as it stands.