Arcadia Finance Faces Possible $2.5 Million Exploit Involving USDC on Base Blockchain

Key Points

1. Arcadia Finance lost approximately $2.5 million in USDC and USDS due to an exploit of its Rebalancer contract on the Base blockchain.

2. The attacker manipulated the contract's arbitrary `swapData` parameters to perform unauthorized swaps, converting stolen funds into WETH and bridging them to Ethereum.

3. Blockchain security firm Cyvers reported the attack occurred at 04:05:58 UTC, with the stolen funds comprising 2.3 million USDC and 227,000 USDS.

4. The attacker received 199 WETH and 965.8 million AERO tokens during the swaps, with Arcadia Finance taking steps to mitigate further losses.

5. The incident highlights broader trends in crypto exploits, with over $2.47 billion lost to hacks, scams, and exploits in the first half of 2025.