Notional Finance (V1 Legacy Escrow)
Last changed 2026-10-10 · Score recalculated — Rescored under Scoring v2, the published formula (avoid.net/scoring): 8 → 26. Problems weighed by who is responsible: incidents the subject suffered −20, concerns that are not fraud −12, problems around the subject, caused by others −1.8; no established finding that it defrauded anyone, so it stays out of the red band; the penalty for incidents it suffered is capped at 20; a recent unresolved incident −24. Version history →
Why this score
| Every page starts at | 65 |
| Concerns that are not fraud | -12 |
| Incidents it suffered (e.g. hacks) | -20 |
| Problems around it, caused by others | -1.8 |
| Recent unresolved incident | -24 |
| Sum | 7 |
- The penalty for incidents it suffered is capped at 20 points.
Score: 26/100 (kept between 0 and 100)
How scoring works →Summary
Notional Finance is an Ethereum-based fixed-rate lending protocol. On September 4, 2026, the protocol's undecommissioned V1 legacy escrow contract was drained of approximately $1.73 million in stablecoins via an integer-overflow exploit in the free-collateral valuation logic. The stolen funds were converted to approximately 689 ETH and laundered through Tornado Cash. No official post-mortem or recovery plan had been published by the Notional Finance team at the time reporting was conducted.
Connected Entities
5 entities · 60 linked investigations- Balancer→mentioned with→Arbitrum(60%)
- Balancer→mentioned with→Ethereum(70%)
- Notional Finance (V1 Legacy Escrow)→mentioned with→Liquid Network(80%)
- Notional Finance (V1 Legacy Escrow)→mentioned with→Balancer(70%)
- Notional Finance (V1 Legacy Escrow)→mentioned with→Arbitrum(70%)
- Notional Finance (V1 Legacy Escrow)→mentioned with→Ethereum(80%)
- Arbitrum→mentioned with→Ethereum(80%)
Timeline(6 events)
3 November 2025
Notional V3 suffers cascading losses when Balancer V2 is exploited. Five leveraged vaults are drained across Ethereum mainnet and Arbitrum, accumulating 632.8 ETH and 80.2 ETH in bad debt respectively. Notional announces full V3 wind-down.
Notional Finance official blog — Balancer Hack Response3 September 2026
Attacker address 0xDaCC...Ce38 submits a setup transaction at 11:58:47 PM UTC (Ethereum block 25,900,220), constructing paired fCash positions to engineer a -2^128 liability in the V1 escrow contract.
Crypto Times — Notional Finance Escrow Contract Faces Reported $1.7M Exploit4 September 2026
Drain transaction confirmed at 12:01:35 AM UTC (block 25,900,234). 69,257.38 DAI and 1,658,524.86 USDC are withdrawn from the V1 escrow contract at 0x9ab...f683.
Crypto Economy — Notional Finance Suffers $1.7M Drain4 September 2026
Stolen stablecoins are swapped into approximately 689.2 ETH and deposited into Tornado Cash in batches beginning at approximately 12:15:59 AM UTC. Laundering is substantially complete by 12:30 AM UTC.
Crypto Economy — Notional Finance Suffers $1.7M Drain4 September 2026
Specter monitoring systems issue a security alert at 12:59:24 AM UTC. PeckShield and CertiK subsequently confirm the incident publicly.
Crypto Times — Notional Finance Escrow Contract Faces Reported $1.7M Exploit4 September 2026
Multiple crypto news outlets publish initial reporting. Notional Finance issues no public statement, incident report, or contract pause in response.
crypto.news — Notional Finance faces suspected $1.7M exploitDecision Log
- slot 455358614 · hash AHjkVujwC2va4q7HtMWjoS37ctY5G7Su4HLbVk15sEtK
- slot 446764476 · hash 6RFMgboyGbhcin5hDGCzNyAJhbSXq4wH5dygNpx6BfsP
This investigation is cryptographically anchored to the Solana blockchain (2 decisions). 11 of 12 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 9/13/2026, 5:32:15 PM
last updated: 10/10/2026, 6:40:16 PM
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