DeFi Protocol Arcadia Finance Hacked for $455,000
- The breach on Arcadia Finance was brought to light by blockchain investigator PeckShield.
- Arcadia Finance verified the hack and halted the contracts to stop the flow of payments.
Arcadia Finance, a protocol for non-custodial decentralized finance (DeFi), was hacked for over $455,000 due to a flaw in the code. The breach on Arcadia Finance was brought to light by blockchain investigator PeckShield. It attributed it to “the lack of untrusted input validation.”
It was claimed that the code did not have a means of validating data against unverified inputs. Due to this security breach, the hacker was able to steal around $455,000 worth of Ethereum (darcWETH) and Optimism (darcUSDC).
Another Vulnerability Reported
Moreover, two hours after PeckShield’s notification. Arcadia Finance verified the hack and halted the contracts to stop the flow of payments. Arcadia’s code has another vulnerability that might have severe consequences for the protocol while the investigations are ongoing.
Hackers may be able to bypass the protocol’s internal vault health check if reentrancy protection, which prevents multiple simultaneous entries into the protocol, is absent.
The majority of the stolen cash, about 180 Ether, came from Optimism and were laundered using Tornado Cash. Ethereum tokens worth over $103,000 were taken, but they are still sitting at the suspicious wallet address.
Total value locked (TVL) at Arcadia Finance has fallen precipitously since the protocol hack, from $600,000 to $140,000, a drop of 77%. With the help of its community and security measures. Arcadia has been in contact with the hacker and has tweeted about it.
Arcadia Finance will need to examine its current security systems and implement stricter regulations to avoid such breaches in the future if it wants to get back on its feet.
Highlighted Crypto News Today:
Terra Co-Founder Daniel Shin and Others Summoned to Court in South Korea
Read more: https://thenewscrypto.com/defi-news-defi-protocol-arcadia-finance-hacked-for-455000/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
