Security firm Blockaid first identified the breach on November 1, observing that the attacker created empty options pools and utilized flash loans to force vault collateral into these pools. By purchasing options, the perpetrator locked assets within their own pools, allowing them to withdraw the collateral as liquidity and siphon funds into personal wallets. Six separate vaults holding WBTC, WETH, USDC.e, and ARB were compromised during the incident.
In section Cryptocurrency
Premia Labs loses $464K in Arbitrum options vault exploit
An attacker drained approximately $464,600 from Premia Labs options vaults on the Arbitrum network, executing a sophisticated manipulation of liquidity pools and flash loans. The stolen assets, including wrapped Bitcoin and Ethereum, were subsequently moved across multiple blockchains before being converted into Bitcoin via decentralized swapping services.
Following the theft, on-chain analysis from PeckShield confirmed the funds were bridged from Arbitrum to the Ethereum network. The attacker then leveraged Chainflip and NEAR Intents to convert the stolen portfolio into Bitcoin. These cross-chain services allow for asset swaps without the oversight of centralized exchanges, complicating recovery efforts. While the movement of funds through these protocols has drawn attention, there is no evidence that either platform knowingly facilitated the exploit or served as the source of the initial vulnerability. Premia Labs has yet to provide a public statement regarding potential reimbursement or a detailed technical breakdown of the affected infrastructure.
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