Arcadia Finance, a DeFi platform, has been the victim of a hacking incident, which further highlights the ongoing security challenges faced by the crypto industry. PeckShield Alert, a security firm, reported on Twitter that a hacker exploited a vulnerability in Arcadia Finance’s code, resulting in the theft of $455,000 worth of funds from the platform.
Hackers targeted the Ethereum (darcWETH) and Optimism (darcUSDC) vaults on the platform, successfully withdrawing the funds. In specific details shared by PeckShield, the hacker transferred 179.3 Ethereum to Tornado Cash, with 148 ETH bridged and 59,000 USDC exchanged.
Roughly two hours after the PeckShield disclosure, Arcadia Finance acknowledged the hack and immediately took action by pausing the contract to prevent further withdrawals. The platform assured its users that it is actively investigating the incident with security experts to determine the root cause of the vulnerability.
Arcadia Finance has also reached out to attackers and is working with security partners, law enforcement and the wider community to resolve situations and recover funds for users of its protocol. The platform emphasizes that its top priority is to reduce the impact of the hack and ensure the best possible outcome for affected users.
This incident serves as a reminder of the persistent cybersecurity risks faced by DeFi platforms and the need for continuous improvement in security measures to protect user funds. As the crypto industry develops, it is very important for platforms to stay alert and collaborate with security experts to address vulnerabilities and protect the assets of their users.