• Fri. Aug 18th, 2023

Hackers Steal $500K from Arcadia DeFi

Aug 11, 2023
Hackers Steal $500K from Arcadia DeFi
Marcel Bich

PeckShield analysts reported a significant loss of approximately $455,000 for Arcadia Finance, a decentralized finance (DeFi) protocol. The reserves of the project were compromised in the darcWETH and darcUSDC stablecoin pools, according to the experts.

Hacker Breach: Arcadia Finance’s Battle for Recovery

Representatives from Arcadia Finance confirmed the hacking incident and have issued a demand to the hacker, requesting the return of the stolen cryptocurrency within twenty-four hours. They warned that failure to comply with this request may lead to involvement of law enforcement agencies.

The exact cause of the hack was not specified by Arcadia Finance, but PeckShield discovered vulnerabilities in the project’s protocol security system. Analysts also revealed that the project’s code was susceptible to the most common attack method in the cryptocurrency market. The stolen cryptocurrency was subsequently laundered by the attacker through the unsanctioned Tornado Cash mixer.

Established in 2021, Arcadia Finance specializes in providing decentralized cross-chain margin trading services. The project has attracted investment from Global Founders Capital, a venture capital firm, although the exact amount remains undisclosed. In addition to trading, the protocol also offers passive income opportunities through liquidity provision.

Following the hack, Arcadia Finance experienced a significant decrease of over 75% in liquidity, as reported by DeFiLlama. Despite this, the project developers have not urged users to withdraw funds from the platform.