An unidentified attacker breached the Arcadia Finance protocol, stealing Wrapped Ethereum (WETH) valued at approximately $2.5 million. The team has confirmed the incident.
#PeckShieldAlert @ArcadiaFi has been exploited, resulting in a loss of ~$2.5M in crypto. The exploiter has swapped the stolen funds for ~840 $ETH & bridged them from #Base to #Ethereum https://t.co/pOV82RR5YC pic.twitter.com/BKMvgaDiDI
— PeckShieldAlert (@PeckShieldAlert) July 15, 2025
The hacker exchanged the funds for 839.2 ETH and transferred them from the Base blockchain to the main network.
Developers have urged users to revoke all permissions for active rebalancing tools.
The Arcadia Finance team continues to investigate the situation and has promised to share the findings later. Several AML companies have offered assistance in tracking and recovering the funds.
In July 2023, the DeFi protocol also fell victim to a hack, with attackers managing to extract digital assets worth approximately $455,000.