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Update (June 15, 9:12 am UTC): This article has been updated to include yet another attack on Arcadia Finance, which brings the total lost sum to $3.5 million.
Arcadia Finance, a decentralized finance (DeFi) platform operating on the Base blockchain, suffered an exploit resulting in the theft of about $3.5 million in cryptocurrency.
The attacker exploited a vulnerability in Arcadia’s Rebalancer contract by abusing arbitrary swapData parameters, enabling a rogue swap that drained assets from user vaults, <a href="https://x.com/CyversAlerts/status/1945011492203421697" rel="noopener noreferrer nofollow">according</a> to an alert from blockchain security company Cyvers.
In a report shared with Cointelegraph, Cyvers said the exploit unfolded on Tuesday at 04:05:58 UTC. The attacker deployed a malicious contract and triggered the exploit within a minute. The stolen tokens were then swapped to Wrapped Ethereum (WETH) on the Base network and bridged over to the Ethereum mainnet.
Cyvers flagged that all looted funds resided behind fresh intermediary addresses on Ethereum, indicating an attempt to obfuscate the trail through fragmentation and likely mixing or <a href="https://cointelegraph.com/learn/articles/what-are-decentralized-exchanges-and-how-do-dexs-work" rel="noopener noreferrer nofollow">decentralized exchange (DEX)</a> activity may come soon.
Related: <a href="https://cointelegraph.com/news/regulatory-gaps-fomo-powering-crypto-crime-supercycle" rel="noopener noreferrer nofollow">FOMO, lax rules are fueling the crypto crime supercycle</a>
<h2 id="2-5-million-in-usdc-usds-stolen">$2.5 million in USDC, USDS stolen</h2>
The stolen tokens included about 2.3 million USDC (<a href="/usdc-price-index" rel="noopener noreferrer">USDC</a>) and around 227,000 USDS, a $2.5 million loss. The attacker received 199 WETH and 965.8 million AERO tokens during the swap process, across 12 impacted addresses.
Cyvers later revealed that Arcadia Finance <a href="https://x.com/CyversAlerts/status/1945043365340270936?t=UWfvUW6XP2oXXX7MPMc3-A&amp;s=09" rel="noopener noreferrer nofollow" target="_blank">suffered</a> yet another attack, with the exploiter successfully extracting nearly $1 million in multiple transactions from the platform. This brings the total lost to $3.5 million.
Cyvers recommended blacklisting the involved addresses on both Base and Ethereum, notifying major exchanges and bridges to halt inbound transactions and sharing suspicious activity reports with law enforcement.
In a Tuesday post on X, the Arcadia Finance team confirmed the exploit. “The team is aware of unauthorized transactions via a Rebalancer. Remove all permissions for asset managers. More information will follow,” the team said.
They asked users to revoke any permissions granted to rebalancers within Arcadia’s platform to minimize further risk.
<figure>
 <img alt="Arcadia Finance exploited, $3.5M stolen and converted to WETH" src="https://s3.cointelegraph.com/uploads/2025-07/01980cef-380c-752f-9df6-1da5545ed9f6" title="">
 <figcaption style="text-align: center;">
 Arcadia Finance team asked users to remove balancers. Source: <a href="https://x.com/ArcadiaFi/status/1944985324943225337" rel="noopener noreferrer nofollow" target="_blank">Arcadia Finance</a>
 </figcaption>
</figure>
Related: <a href="https://cointelegraph.com/news/gmx-exploiter-begins-returning-stolen-funds" rel="noopener noreferrer nofollow">Hacker returns stolen funds from $40M GMX exploit</a>
<h2 id="2-47-billion-stolen-in-first-half-of-2025">$2.47 billion stolen in first half of 2025</h2>
The first half of 2025 has&nbsp;<a href="https://cointelegraph.com/news/otal-hacks-down-q2-after-record-losses-2025-h1" rel="noopener noreferrer nofollow">seen more than $2.47 billion</a> in losses&nbsp;<a href="https://cointelegraph.com/learn/articles/8-most-common-cyberattacks-and-how-to-prevent-them" rel="noopener noreferrer nofollow">due to hacks, scams and exploits</a>, representing a nearly 3% increase over the $2.4 billion stolen in 2024.
More than $800 million was lost across 144 incidents in Q2, a 52% decrease in value lost&nbsp;compared&nbsp;to the previous quarter, with 59 fewer hacking incidents, CertiK&nbsp;said in a report earlier this month.
Cointelegraph has reached out to Arcadia and will update this piece should we hear back.
Magazine: <a href="https://cointelegraph.com/magazine/coinbase-hack-law-protect-heres-why/" rel="noopener noreferrer nofollow">Coinbase hack shows the law probably won’t protect you — Here’s why</a>

Arcadia Finance exploited, $3.5M stolen and converted to WETH

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