According to reporting from Certik, the DeFi protocol Arcadia Finance has suffered substantial losses following an attack resulting in approximately $3.5 million being stolen.
Details of the Attack
The attack occurred on the Ethereum Layer-2 network known as Base. Certik reported multiple suspicious transactions from which around $1.6 million was stolen initially. Further actions by the attacker led to cumulative losses of about $3.5 million.
Response from Arcadia Finance
The Arcadia team confirmed the attack and issued a warning to users on their official X account (formerly Twitter): "Unauthorized transactions were made through Rebalancer. Remove all asset manager permissions." Users were advised on their website to disconnect Rebalancer and Compounder.
Context and Market Impact
Backed by Coinbase Ventures, Arcadia Finance offers users the ability to borrow, lend, and swap assets without requiring permissions. Certik previously noted that in May 2025, crypto users and DeFi protocols lost a total of $302 million, which represents a 17% decrease compared to April.
The attack on Arcadia Finance highlights the risks associated with using DeFi protocols and the necessity for security measures on cryptocurrency platforms.
