DeFi Protocol Arcadia Finance Loses $455,000 as a Result of Hack

Analysts at PeckShield reported a hack on Arcadia Finance’s DeFi protocol, with the hacker managing to withdraw crypto assets with a combined value of roughly $455,000.

Furthermore, their code allegedly lacked reliable input validation and reentry protection, both of which made the exploit possible.

The hack affected the Ethereum (darcWETH) and Optimism (darcUSDC) pools and the Arcadia team suspended the contracts soon afterwards.

Most of the stolen funds came from Optimism 180 ETH (~$336,000 at that time), and had been taken to a crypto mixer.

Additionally, assets from the Ethereum pools are still at the hacker’s address.

This event occurred after July’s hack on the cross-chain protocol Multichain, and Beosin experts have declared that the digital asset sector has lost approximately $655.6 million due to the sum of reported hacks, frauds and rug pulls.

Immunefi analysts added that the number of crypto project hacks has increased by 63%, reaching 81 incidents in the second quarter of 2023.