15-7-2025 – Decentralized finance platform Arcadia Finance suffered a $2.5 million security breach through a cross-chain bridge exploit, with hackers converting stolen assets to 840 ETH on the Ethereum network, according to blockchain security firm PeckShieldAlert.

The attack targeted vulnerabilities in cross-chain infrastructure, allowing hackers to drain funds and transfer them across blockchain networks. Arcadia Finance immediately paused its smart contracts following the breach and is working with security partners and law enforcement to investigate the incident. The platform stated that recovering funds for protocol users remains its top priority, though no timeline has been provided for contract resumption.

This incident highlights ongoing security challenges facing DeFi platforms, particularly those utilizing cross-chain bridges which have become frequent targets for hackers. The exploit adds to a growing list of cross-chain vulnerabilities that have cost the DeFi sector hundreds of millions in recent years. Market sentiment remains cautious as the breach raises questions about the security of cross-chain protocols and potential regulatory responses.

The timing of the attack coincides with increased scrutiny of DeFi security practices, as regulators worldwide examine the sector’s risk management capabilities. Arcadia’s breach follows similar high-profile exploits that have targeted cross-chain bridges, demonstrating the persistent technical challenges in securing multi-blockchain infrastructure.