Notional Finance faces suspected $1.7M exploit

Notional Finance may have suffered a $1.7 million exploit involving an escrow contract, blockchain investigators reported on Sept. 4. The reported losses include approximately $69,242 in DAI and $1.66 million in USDC. Summary Researchers reported $1.7 million in DAI and USDC leaving an escrow contract linked to Notional. The reported losses comprise $69,242 in DAI and $1,658,423 in USDC, according to Specter researchers. The suspected attacker exchanged the stablecoins for 689.2 ETH before depositing funds into Tornado Cash. PeckShield cited Specter’s findings, while Notional had not publicly confirmed the incident when last checked. The exploit’s technical cause, affected users and prospects for recovering assets remain publicly unconfirmed. Security firm PeckShield cited findings published by blockchain investigation group Specter. Neither report provided a complete technical explanation of how the assets left the contract. “The Notional Finance escrow contract may have been exploited,” PeckShield said, preserving uncertainty about the incident’s status. #PeckShieldAlert Specter has reported that the Notional Finance escrow contract may have been exploited, resulting in $1.7M in ethereum:0x6b175474e89094c44da98b954eedeac495271d0f and $USDC lost. The exploiter has swapped the stolen funds into 689.2 $ETH and deposited them into… pic.twitter.com/Wd5Dc3MWtL — PeckShield September 4, 2026 Notional Finance exploit report identifies two addresses Researchers identified two Ethereum addresses allegedly connected to the movement of the assets. The first address is 0xC954…De69, while the second is 0xDaCC…Ce38. The addresses were labelled as theft addresses by Specter. That description remains an investigator attribution rather than a finding confirmed by Notional Finance, law enforcement or a court. The available reports do not identify the precise escrow function involved. They also do not establish whether the event resulted from a smart-contract vulnerability, compromised credentials, faulty permissions or another cause. Stablecoins were reportedly converted into 689.2 ETH The suspected attacker reportedly exchanged the DAI and USDC for approximately 689.2 ETH. The Ether was then deposited into Tornado Cash, according to Specter and PeckShield. Tornado Cash is a set of Ethereum smart contracts designed to reduce the visible connection between deposits and later withdrawals. Its use can complicate blockchain tracing, although depositing assets into the protocol does not independently prove criminal ownership or intent. The rapid conversion of stablecoins may also reduce opportunities for issuers or centralized platforms to restrict the assets. Both DAI and USDC can be followed publicly before conversion, while subsequent withdrawals from a mixer become harder to associate with the original address. In related coverage, crypto.news reported that an address tied to the Drift Protocol exploiter moved $44 million through Tornado Cash after remaining inactive for several months. No technical cause or official response is available Notional Finance had not published a public incident report or confirmation through its official account when checked.