According to Cointelegraph, a hacker drained about $455,000 from Arcadia Finance, a non-custodial, decentralised finance (DeFi) protocol. It is expected that it was executed by exploiting a code vulnerability.
Sources revealed that PeckShield, a blockchain investigator, had warned about the hack on Arcadia Finance, and believed that the cause was “the lack of untrusted input validation.” Supposedly, the code did not have a validation mechanism to cross-check fake inputs. This drawback allowed the hacker to drain funds worth about $455,000 from Ethereum (darcWETH) and Optimism (darcUSDC) vaults, Cointelegraph added.
“In addition, there is a lack of reentrancy protection, which allows for the instant liquidation to bypass the internal vault health check,” PeclShield explained.
It is believed most of the stolen funds about 180 Ether (ETH $1,861) were from Optimism, and was trained through Tornado Cash. Furthermore, the stolen tokens valued at over $103,000 (at the time of writing) present on Ethereum was still present in the hacked wallet address, Cointelegraph concluded.
(With insights from Cointelegraph)
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