Arcadia Finance says exploiter contacted after $450K hack
DeFi protocol Arcadia Finance has alerted users that it lost $455,000 in a hack, which blockchain security firm PeckShield says was made possible due to vulnerabilities in Arcadia’s code. Non-custodial, permissionless protocol Arcadia Finance launched on Ethereum and Optimism in March. It allows users to trade spot with leverage and boost staked ether. PeckShield flagged the exploit on Twitter early Monday morning. “Our analysis shows that the [Arcadia Finance] hack is due to the lack of untrusted input validation,” the blockchain security firm posted, “which is exploited to drain funds from both darcWETH and darcUSDC vaults.” PeckShield says that the exploiter on Optimism transferred 180 ether ($305,000) and washed most of it through Tornado Cash. The exploiter on Ethereum took roughly $100,000, which remains in the wallet at press time. Arcadia Finance’s total value locked (TVL) has sharply dropped by 77% since the protocol hack, from $605,000 to $140,000 at press time. Acc...