according to the website - By Tokentopnews.com
On July 15, 2025, Arcadia Finance, a decentralized finance protocol, suffered a serious attack that resulted in losses of approximately $3.5 million, according to blockchain security firms Cyvers and PeckShield.
The exploit revealed recurring security issues
The latest leak, discovered by Cyvers and PeckShield, uncovered a recurring security problem in Arcadia Finance contracts. The exploit caused significant damage to Arcadia Finance as funds were drained from user wallets through a vulnerability in the Rebalancer contract. The attack affected USDC, USDS, and other tokens, which were quickly transferred to Ethereum.
"The attacker exploited a vulnerability in the Arcadia Rebalancer contract by abusing arbitrary swapData parameters, allowing for a fraudulent swap that drained assets from user wallets." — Cyvers, security report
Significant funds were transferred to Ethereum, complicating recovery efforts. This event raises concerns about the reliability of decentralized financial infrastructure. While Arcadia Finance responds, the crypto community remains vigilant regarding security measures. The vulnerability may impact future regulatory inspections and intensify calls for improvements to contract structures. Historical precedents of such breaches indicate the need for immediate technical remediation and potential legal action. Cybersecurity firms continue to advocate for stricter oversight to address such significant vulnerabilities.
