Arcadia Finance v1
Last changed 2026-10-10 · Score recalculated — Rescored under Scoring v2, the published formula (avoid.net/scoring): 22 → 50. Problems weighed by who is responsible: incidents the subject suffered −20, concerns that are not fraud −6, problems around the subject, caused by others −1.1; legitimacy credit long-running +4; no longer operating, so capped at 50; the penalty for incidents it suffered is capped at 20. Version history →
Why this score
| Every page starts at | 65 |
| Concerns that are not fraud | -6 |
| Incidents it suffered (e.g. hacks) | -20 |
| Problems around it, caused by others | -1.1 |
| Long-running | +4 |
| Sum | 42 |
- No longer operating, so capped at 50.
- The penalty for incidents it suffered is capped at 20 points.
Score: 50/100 (kept between 0 and 100)
How scoring works →Summary
Arcadia Finance v1 was a decentralized margin lending protocol deployed on Ethereum and Optimism that suffered a critical reentrancy exploit on July 10, 2023, resulting in the loss of approximately $459,030 across both chains. The attack exploited a missing reentrancy guard in the vault liquidation function combined with absent untrusted-input validation, allowing the attacker to bypass collateral health checks and drain darcWETH and darcUSDC vaults. The stolen funds on Optimism were largely laundered through Tornado Cash; the protocol subsequently paused all contracts and issued a bounty ultimatum to the attacker that went unanswered.
Connected Entities
9 entities · 60 linked investigations- Ethereum→mentioned with→Coinbase(60%)
- Across Protocol→mentioned with→Ethereum(70%)
- Across Protocol→mentioned with→Optimism(60%)
- ZachXBT→mentioned with→Ethereum(70%)
- Optimism→mentioned with→Ethereum(80%)
- Optimism→mentioned with→Coinbase(60%)
- Coinbase→mentioned with→Base(70%)
- Arcadia V1→mentioned with→Across Protocol(75%)
- Coinbase→mentioned with→Optimism(80%)
- Arcadia V1→mentioned with→Coinbase(60%)
- + 16 more
Timeline(7 events)
October 2022
Nethermind begins audit of complete Arcadia Finance v1 codebase (Q4 2022 – Q1 2023).
Arcadia Finance Audits Documentation10 July 2023
Attacker exploits reentrancy vulnerability in Arcadia Finance v1 vault liquidation function on Ethereum and Optimism. PeckShield issues first public alert. Total losses: $459,030 ($123,758 on Ethereum; $335,271 on Optimism). Attacker addresses: Optimism 0xD3641C912a6A4c30338787E3C464420b561A9467; Ethereum 0x5C75e94dD0Ab9c10BFd1B8073DafEF031D3c050d.
Arcadia Finance Post Mortem / CoinTelegraph10 July 2023
Arcadia Finance team pauses all liquidity pool contracts, sets interest rates to zero, and engages BlockSec, Hexagate, and PeckShield for investigation. TVL falls 77% from $605K to $140K.
Arcadia Finance Post Mortem10 July 2023
Optimism attacker routes approximately 179 ETH through Tornado Cash. Ethereum attacker retains funds in wallet. Team contacts law enforcement and sends on-chain messages to attacker addresses.
Protos / Crypto Daily11 July 2023
Arcadia Finance issues 24-hour on-chain ultimatum: return 90% of stolen funds and keep 10% as white-hat bounty with no legal pursuit, or face a 10% public bounty for information leading to identification and arrest. Attacker does not respond.
DL News / CoinTelegraph14 July 2025
Attacker funds fresh wallet via Tornado Cash on Ethereum at 10:58 PM UTC in preparation for a new exploit targeting Arcadia Finance v2 Rebalancer contract on Base.
Rekt News15 July 2025
Arcadia Finance v2 Rebalancer contract exploited on Base for approximately $2.5M (total later estimated at $3.6M across two attack waves). Attacker bridges 840 ETH to Ethereum mainnet via Across Protocol. AAA token drops 46%. Team offers 10% white-hat bounty; attacker does not comply.
Rekt News / CoinTelegraphDecision Log
- slot 455362551 · hash HK3k86dE6EjuLLCdZnvy19igYYkcLsC8H86fhnmUGoLU
- slot 423153877 · hash 9R99vYCRzzfsqoZMrUp7psYZYF3dLjCZPZZDyGCm3Kzw
This investigation is cryptographically anchored to the Solana blockchain (2 decisions). 14 of 15 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-5
generated: 5/4/2026, 2:54:40 AM
last updated: 10/10/2026, 6:42:44 PM
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