On Monday, July 15, decentralized platform Arcadia Finance suffered a serious cyberattack resulting in the loss of approximately $2.5 million. The hackers targeted the platform’s rebalancer on the Base network, a crucial component for liquidity management, siphoning off hundreds of ETH tokens.
Following the attack, the Arcadia team immediately took to X (formerly Twitter) to warn users and urge them to revoke asset manager permissions and deactivate any active rebalancers to prevent further losses.
What happened and how did the hack unfold?
According to analysts from blockchain security firm PeckShield, around 840 ETH (worth approximately $2.5 million at current prices) was stolen. The attackers bridged the stolen assets from Base to Ethereum and used the well-known crypto mixer Tornado Cash to obscure their tracks.
This isn’t the first time Arcadia has suffered a breach — back in July 2023, the platform lost $455,000 due to a code vulnerability exploited by hackers.
Who is behind Arcadia and how are they responding?
Arcadia Finance is backed by Coinbase Ventures and recently joined the Circle Alliance. According to the platform’s website, USDC accounts for over one-third of Arcadia’s total value locked (TVL).
All smart contracts on the platform have been suspended indefinitely, with no timeline given for resumption. In a statement, Arcadia said it is cooperating with security experts, law enforcement, and the wider crypto community, emphasizing that “recovering funds for Arcadia protocol users remains our top priority.”
2025: A Record-Breaking Year for Crypto Hacks
The Arcadia hack adds to a growing list of crypto breaches in 2025, with more than $2.1 billion stolen across over 75 incidents — nearly matching the total annual losses seen in 2024.
While Arcadia’s losses may seem modest, the attack highlights persistent vulnerabilities in the DeFi space, especially involving bridges and smart contracts.
Reports suggest that over 80% of stolen funds this year came from infrastructure exploits, where hackers accessed deeper blockchain systems, rather than exploiting individual contract bugs.
Biggest 2025 Attack: $1.5 Billion Stolen from Bybit
The most devastating hack so far this year was February’s attack on Bybit, where $1.5 billion was drained. The breach is attributed to the North Korea-linked Lazarus Group, and it has nearly doubled the average hack size compared to 2024.
Other notable hacks include:
🔹 Cetus Protocol – $225.6 million lost
🔹 Nobitex (Iran) – $89.1 million stolen, linked to Israeli group Gonjeshke Darande
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