Hackers stole almost half a million dollars from the Arcadia Finance DeFi project
Date: 2023-07-11 Author: Karina Ziganova Categories: BUSINESS, IN WORLD
Arcadia Finance's DeFi protocol lost almost $500,000 due to a hacker attack, but analysts believe that the lack of basic protection is to blame
A decentralized finance (DeFi) protocol called Arcadia Finance lost about $455,000 due to a hacker attack. This was announced on Twitter by PeckShield analysts. According to experts, the project's reserves were cleared in the pools for storing darcWETH and the darcUSDC stablecoin.
Arcadia Finance confirmed the fact of hacking. According to representatives of the project, they have already turned to the hacker with a demand to return the cryptocurrency within a day. If the attacker does not agree to the conditions of the developers, they threatened to seek help from law enforcement.
What exactly caused the hack, Arcadia Finanace did not specify. As PeckShield found out, the hack was made possible due to gaps in the security system of the project's protocol. Moreover, analysts also found out that Arcadia Finance's code was not even protected from the most frequent attack method in the cryptocurrency market. The attacker has already laundered the stolen cryptocurrency through the sanctioned mixer Tornado Cash.
Founded in 2021, Arcadia Finance offered decentralized cross-chain margin trading services. According to Crunchbase, the project attracted investment from venture capital firm Global Founders Capital, but their size was not disclosed. In addition to trading, the protocol also provides passive income services through the provision of liquidity.
According to the DeFiLlama platform, against the backdrop of the hack, liquidity in Arcadia Finance fell by more than 75%. At the same time, the developers of the project did not urge users to withdraw funds from the site.
