The DeFi Exploit Season is not over as Arcadia Finance has lost $455,000

Reports are emerging that decentralized finance (DeFi) platform Arcadia Finance may have become the latest victim of the exploit. A leading blockchain security firm has detected bogus transactions on the network, but Arcadia has yet to confirm.

On July 10, blockchain security firm PeckShield reported that a community contributor had discovered an exploit on margin lending platform Arcadia Finance.

Another DeFi exploit

The platform was exploited on Ethereum and layer-2 network optimism for around $455,000 mentioned.

It added that the exploiter had already transferred about 179 ETH by blocking 148 ETH and swapping $59,000 into Tornado Cash.

Arcadia Finance flow of stolen money. source: Twitter / @PeckShieldAlert

PeckShield added that its analysis of the hack shows that the losses “are caused by a lack of validation of untrusted inputs, which are being exploited to drain funds from darcWETH and darcUSDC vaults.”

In addition, “there is a lack of re-entry protection, allowing immediate liquidation to bypass the Treasury’s internal health check,” she added.

There were no alerts, updates or other details on the Arcadia Finance Twitter feed.

BeInCrypto has reached out to Arcadia Finance for more details but did not receive a response at the time of publication. Arcadia is a non-security protocol that enables the creation of configurable cross-chain margin accounts.

Additionally, DeFiLlama mentioned Sharp drop in Arcadia Finance TVL 2 hours ago. It fell by 76% from $605,000 to $145,000.

DeFi exploits are not slowing down

The latest DeFi exploit comes on the heels of the $126 million Multichain hack on July 7. Over the weekend, stablecoin issuers Tether and Circle blacklisted five addresses that had received some of the stolen funds.

Moreover, the poly network was exploited again earlier this month, losing $10 million to the hackers.

In a related development, he took advantage of the Solana-based Robox NFT trading platform mentioned Exploitation on June 10th.

“We have detected and confirmed malicious activity that exploited our pooled liquidity pool.”

However, details were few and far between at the time of writing.


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