The non-custodial DeFi protocol Arcadia Finance was hacked and nearly half a million dollars was stolen by a cybercriminal who exploited a security flaw in the code.
A blockchain investigator, PeckShield, warned about a security flaw in the Arcadia Finance code that allowed a hacker to steal $455,000 from the protocol’s vaults.
After PeckShield notified Arcadia Finance of the hack, the protocol acknowledged the incident and suspended the contracts to prevent further financial loss.
While the investigation into the Arcadia hack is ongoing, it has been revealed that the protocol’s code contains another vulnerability that could be exploited to cause significant damage.
The hacker was successful in stealing roughly 180 Ether from Optimism, which they subsequently laundered using Tornado Cash.
The crypto space was hit hard by hacks and exploits in the second quarter of 2023, with losses totaling over $300 million.
