Arcadia Finance Lost $455K On Both Ethereum, Optimism Network

Arcadia Finance, a non-custodial decentralized finance (DeFi) protocol, is the latest victim of a $455,000 exploit that occurred on both the Ethereum and Optimism networks. Confirming the hack, Arcadia revealed that it is working with security partners to minimize damage after the contracts were intercepted.

The platform has also involved law enforcement to deal with the issue.

• The Arcadia attack was first reported by blockchain security specialist Peckshield. Claimed This was caused by a “lack of untrusted input verification,” which is used to withdraw funds from both Darkweth and DarkUSDC vaults.
• The firm highlighted another vulnerability in DeFi protocols – a “lack of re-entry protection” – that enables instant liquidations to bypass internal vault health checks.
• The funds stolen from the Optimism Network stake were funneled into the controversial coin mixer, Tornado Cash. But the Ethereum portion of the stolen funds, worth more than $103,000, is still there. have been marked Wallet address.
• Arcadia has not yet confirmed the validity of the root cause identified by Peckshield, but said an investigation is underway. Protocol is latest statement Reading,

“We will continue to work with our security partners, law enforcement and the wider community to resolve this as quickly as possible. Our number one priority is the recovery of funds for Arcadia Protocol users.”

• Arcadia is a non-custodial, permissionless protocol that launched on Ethereum and Optimism in March this year. The platform essentially enables users to trade spot with leverage and promote staked Ether.
• The latest exploit comes amid a spate of large-scale hacks recorded in the digital asset sector.
• In the first of 2023 alone, Web3 security firm Beosin Identified $470 million lost in 108 DeFi protocol attacks.