Notional Finance Investigates Potential $1.7 Million Escrow Exploit

Blockchain analytics firm Specter first identified the suspicious activity on September 4, with PeckShield subsequently verifying the findings. According to investigators, the drain includes $69,242 in DAI and $1,658,423 in USDC. The suspected attacker converted the entirety of the stolen funds into 689.2 ETH before routing the assets through Tornado Cash, a move designed to obscure the transaction history and complicate recovery efforts.

Investigators have flagged two specific Ethereum addresses—0xC954…De69 and 0xDaCC…Ce38—as being involved in the movement of the assets. Despite these findings, Notional Finance has not issued a public statement or confirmed the breach. The technical nature of the incident, including whether it stemmed from a smart-contract vulnerability or compromised credentials, remains unknown. Because the protocol has yet to report on the status of its contracts or the safety of remaining user funds, the $1.7 million figure remains a preliminary estimate rather than a finalized loss report.