Arcadia Finance sees $2.5 million hack, loses nearly 840 ETH

The post Arcadia Finance sees $2.5 million hack, loses nearly 840 ETH appeared on BitcoinEthereumNews.com.

Earlier today, July 15, Arcadia Finance, a liquidity management platform for decentralized crypto exchanges, was exploited, resulting in a loss of about $2.5 million in crypto assets. The hackers targeted one of the platform’s key features, the rebalancer on the Base network.  Shortly after the exploit, the Arcadia team took to X, formerly Twitter, to warn users, urging them to remove the permissions for their asset managers and remove active rebalancers to prevent further losses. Source: PeckShield More about the hack According to blockchain security firm PeckShield, Arcadia Finance lost about 840 Ethereum tokens, worth roughly $2.5 million at current prices. PeckShield wrote in an X post that the hackers have already bridged the stolen assets from Base to Ethereum, and the sanctioned crypto mixer, Tornado Cash, reportedly played a part. While the value of ETH lost to the hackers is considerable, it is not the first time Arcadia has experienced such an occurrence. The liquidity management platform witnessed a $455,000 hack in July 2023 when hackers exploited a vulnerability in its code. Arcadia Finance is backed by Coinbase Ventures and is also part of the Circle Alliance, which it joined in late June. According to its website, USDC makes up more than a third of Arcadia’s TVL. Arcadia’s contracts have now been paused with no clear timeline for contract resumption. In the meantime, it reports that it is collaborating with security analysts in a bid to ascertain how the breach occurred. Arcadia Finance said, “We will continue to work with our security partners, law enforcement, and the broader community to resolve this as best we can. Our number one priority is recovering funds for Arcadia protocol users.” As for how the community and market are reacting to the exploit, skepticism and concern have taken center stage, with many worried…