Verify a decision

{"actor":"system:backfill","investigation_id":"0d100113-16a1-4e26-89b0-e41049bbd95e","kind":"publish","page_slug":"leadblocks-morpho-blue-market","published_at":"2026-05-29T16:47:16.968Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"LeadBlock's Morpho Blue Market","sections":[{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.theblock.co/post/184000/european-crypto-venture-firm-leadblock-partners-hits-first-close-of-150-million-fund-exclusive","type":"other","url":""},{"credibility":3,"name":"https://leadblockpartners.com/","type":"other","url":""},{"credibility":3,"name":"https://morpho.mirror.xyz/bgUB21hQoy-w7T9je7sEpgTp4EsMMkwbO3sFJmWAwGw","type":"other","url":""},{"credibility":3,"name":"https://forum.morpho.org/t/leadblock-rwa-backed-usdc-vault/507","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://forum.morpho.org/t/retrospective-paxg-usdc-market-oracle-configuration/891","type":"other","url":""},{"credibility":3,"name":"https://medium.com/coinmonks/decoding-morphoblues-230k-exploit-6296565ced40","type":"other","url":""},{"credibility":3,"name":"https://blog.solidityscan.com/morphoblue-hack-analysis-638b685f8bf2/","type":"other","url":""},{"credibility":3,"name":"https://blog.verichains.io/p/morpho-protocol-market-oracle-price","type":"other","url":""},{"credibility":3,"name":"https://www.bitget.com/news/detail/12560604270503","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://forum.morpho.org/t/retrospective-paxg-usdc-market-oracle-configuration/891","type":"other","url":""},{"credibility":3,"name":"https://docs.morpho.org/learn/resources/risks/","type":"other","url":""},{"credibility":3,"name":"https://docs.morpho.org/curate/tutorials-v1/bad-debt/","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://x.com/MorphoLabs/status/1845746698393391167","type":"other","url":""},{"credibility":3,"name":"https://forum.morpho.org/t/retrospective-paxg-usdc-market-oracle-configuration/891","type":"other","url":""},{"credibility":3,"name":"https://morpho.org/blog/introducing-risk-warnings-transitioning-to-a-permissionless-interface/","type":"other","url":""},{"credibility":3,"name":"https://docs.morpho.org/learn/resources/risks/","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://app.morpho.org/ethereum/vault/0x4cA0E178c94f039d7F202E09d8d1a655Ed3fb6b6/leadblock-usdc-rwa","type":"other","url":""},{"credibility":3,"name":"https://forum.morpho.org/t/leadblock-rwa-backed-usdc-vault/507","type":"other","url":""},{"credibility":3,"name":"https://blog.midas.app/midas-and-leadblock-pioneering-the-mtbill-backed-lending-market-on-morpho-blue/","type":"other","url":""},{"credibility":3,"name":"https://www.chainsecurity.com/security-audit/morpho-vault-v2","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://en.wikipedia.org/wiki/ZachXBT","type":"other","url":""},{"credibility":3,"name":"https://medium.com/coinmonks/decoding-morphoblues-230k-exploit-6296565ced40","type":"other","url":""},{"credibility":3,"name":"https://blog.solidityscan.com/morphoblue-hack-analysis-638b685f8bf2/","type":"other","url":""}]}],"sources_used":[],"summary":"LeadBlock's Morpho Blue Market refers to a permissionless lending market and associated MetaMorpho vault curated by LeadBlock Partners on the Morpho Blue protocol. On October 13, 2024, an oracle misconfiguration in the LeadBlock-curated PAXG/USDC market enabled an opportunistic user to borrow approximately $230,000 in USDC against only $350 of PAXG collateral, exploiting an overvalued asset price of $2.6 trillion per unit of gold. The incident was attributed to an incorrectly configured SCALE_FACTOR by LeadBlock's oracle provider and raised questions about the adequacy of pre-launch testing and risk curation practices.","timeline":[{"date":"2019-01-01","event":"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.","source":""},{"date":"2022-11-01","event":"LeadBlock Partners closes Fund II at $150 million, backed by family offices, hedge fund managers, and financial institutions.","source":""},{"date":"2024-08-01","event":"Morpho raises $50 million in a private sale round led by Ribbit Capital; LeadBlock Bitpanda Ventures participates as a backer.","source":""},{"date":"2024-01-01","event":"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.","source":""},{"date":"2024-10-13","event":"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.","source":""},{"date":"2024-10-15","event":"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.","source":""},{"date":"2024-10-18","event":"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.","source":""},{"date":"2024-10-14","event":"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.","source":""}]},"v":1}