Arcadia Finance Loses $455K In Ethereum And Optimism Hack
Arcadia Finance’s DeFi protocol resulted in a loss of approximately $455,000. The blockchain investigator PeckShield who alerted about the hack, pointed out that the root cause of the hack was “the lack of untrusted input validation”. The hacker exploited this loophole to drain funds worth roughly $455,000 from Ethereum (darcWETH) and Optimism (darcUSDC) vaults. Although Arcadia Finance confirmed the hack two hours after PeckShield’s intimation and paused the contracts to prevent further loss of funds.
According to PeckShield: “In addition, there is a lack of reentrancy protection, which allows for the instant liquidation to bypass the internal vault health check.”. Most of the stolen funds were from Optimism, which was approximately 180 Ether, and have already been washed via Tornado Cash. However, the stolen tokens on Ethereum, worth over $103,000 at the time of writing, remain parked at the suspected wallet address. A report by blockchain security company CertiK revealed that a total of 212 security incidents were recorded in the quarter, resulting in a loss of $313,566,528 from Web3 protocols. In comparison to the previous year’s Q2 data, CertiK found that the number of crypto hacks declined by 58%. Out of these, the BNB Smart Chain recorded the most incidents, with 119 incidents leading to $70,711,385 in losses.