Arcadia Finance Loses $2.5M in DeFi Exploit on July 15

- Hackers exploit Arcadia Finance’s rebalancer contract on the Base network. - Hackers have stolen over $2.1 billion from DeFi platforms so far in 2025, highlighting rising threats. On July 15, 2025, hackers exploited Arcadia Finance, a decentralized finance (DeFi) platform, for an estimated $2.5 million. According to reports from multiple blockchain security firms on the same day, the attack occurred on the Base network and targeted a vulnerability in the platform’s rebalancer contract. On July 15, security firms PeckShield, Certik, and Cyvers reported that the hackers manipulated the “swapData” parameters, which allowed them to execute unauthorized swaps and drain user vaults. The attackers then converted the stolen assets, including USDC and USDS, into Wrapped Ethereum (WETH) before transferring the funds to the Ethereum mainnet. These reports also indicate the perpetrators likely laundered the stolen funds using the sanctioned crypto mixer Tornado Cash. Following the attack, Arcadia Finance halted all contract operations to prevent additional losses. The platform also advised users to revoke permissions for asset managers and deactivate their rebalancers. Arcadia further stated that it is actively collaborating with security analysts and law enforcement agencies to investigate the incident and attempt fund recovery. This is not Arcadia Finance’s first security breach. In July 2023, the platform lost $455,000 in a separate exploit, underscoring recurring vulnerabilities in its code. The Arcadia Finance incident is part of a broader trend of increasing attacks on the decentralized finance sector throughout 2025. According to security firm reports, losses from more than 75 hacking incidents have already surpassed $2.1 billion this year, with some reports indicating total losses reached over $2.47 billion by mid-2025. Infrastructure-level breaches, such as flaws in cross-chain bridges and smart contracts, accounted for over 80% of the stolen funds. For instance, one of the year's most significant breaches involved a reported $1.5 billion exploit of the Bybit exchange. According to CoinMarketCap, as of 20:09 UTC on July 15, Ethereum (ETH) was trading at $3,034.31, with a 1.43% increase in its 24-hour trading volume. Meanwhile, USDC was trading at $1.00, with a 0.02% change in its 24-hour trading volume during the same period.