Arcadia Finance exploited, $2.5M stolen and converted to WETH

Arcadia Finance’s Rebalancer contract was exploited for $2.5 million in USDC and USDS on the Base blockchain, with stolen assets swapped to WETH.

Arcadia Finance, a decentralized finance (DeFi) platform operating on the Base blockchain, suffered an exploit resulting in the theft of about $2.5 million in cryptocurrency.

The attacker exploited a vulnerability in Arcadia’s Rebalancer contract by abusing arbitrary swapData parameters, enabling a rogue swap that drained assets from user vaults, according to an alert from blockchain security company Cyvers.

In a report shared with Cointelegraph, Cyvers said the exploit unfolded on Tuesday at 04:05:58 UTC. The attacker deployed a malicious contract and triggered the exploit within a minute. The stolen tokens were then swapped to Wrapped Ethereum (WETH) on the Base network and bridged over to the Ethereum mainnet.

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