Blockchain Security Firm Certik Reveals Major Decentralized Finance (DeFi) Protocol Is Being Targeted by Hackers

Decentralized finance (DeFi) protocol Arcadia Finance has been hit with a nearly $3.5 million attack on the Ethereum Layer-2 network called Base, according to blockchain security firm Certik. The attack occurred on the Ethereum Layer-2 network.

Arcadia Finance Suffers $3.5 Million DeFi Attack on Base Network

Certik first drew attention to the attack in his statement today:

We detected multiple suspicious transactions on Base. The attacker stole approximately $1.6 million from Arcadia Finance. This is believed to have been done through arbitrary use of swapdata via the Rebalancer contract.

A few hours later, Certik announced that the attack was continuing and that the total loss had reached approximately $3.5 million.

The Arcadia team also confirmed the attack and warned users in a post on the official X (formerly Twitter) account:

“Unauthorized transactions were made through Rebalancer. Remove all asset manager permissions.”

On their website, users were advised to “disconnect Rebalancer and Compounder.”

Backed by Coinbase Ventures, Arcadia Finance is a DeFi platform that allows users to borrow and lend, leverage, and swap assets without requiring permission.

Certik, one of the most well-known companies in the industry for Web3 security, stated in a report published last month that crypto users and DeFi protocols lost a total of $302 million in May 2025, a decrease of approximately 17% compared to April.

Certik is backed by major investors such as Sequoia Capital, Tiger Global, and Goldman Sachs, and is expected to reach a valuation of $2 billion by 2024.

*This is not investment advice.