Why is Notional Finance facing a suspected $1.7 million exploit?

Notional Finance may have suffered an escrow contract exploit after researchers reported about $1.7 million in DAI and USDC leaving the contract, but the protocol had not confirmed the incident when reported.

What assets were reportedly taken from Notional Finance?

Notional Finance reportedly lost $69,242 in DAI (CRYPTO:DAI) and $1,658,423 in USDC (CRYPTO:USDC), according to blockchain investigators tracking the suspected exploit.

How much Ethereum was linked to the suspected Notional Finance exploit?

Notional Finance researchers reported that the suspected attacker exchanged the reported DAI and USDC for about 689.2 ETH (CRYPTO:ETH) before moving the Ether to Tornado Cash.

What happened to the funds after the suspected Notional Finance exploit?

The suspected Notional Finance attacker reportedly deposited 689.2 ETH (CRYPTO:ETH) into Tornado Cash after exchanging the reported stablecoin losses, according to Specter and PeckShield.

Has Notional Finance confirmed the suspected exploit?

Notional Finance had not publicly confirmed the suspected exploit when the report was published, and no public explanation had established whether a contract flaw, compromised credentials or another issue caused the reported fund movements.

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Notional Finance faces suspected $1.7M exploit

Written by Brie CarterPublished Sep 4, 2026, 8:25 AM

Researchers reported that about $1.7 million in DAI and USDC left a Notional Finance escrow contract.
The funds were reportedly swapped for 689.2 ETH before being sent to Tornado Cash.
Notional Finance had not confirmed the incident or identified the cause when the report was published.

Notional Finance may have suffered a suspected $1.7 million exploit involving an escrow contract, according to blockchain investigators.

The reported losses include $69,242 in DAI (CRYPTO:DAI) and $1.66 million in USDC (CRYPTO:USDC), according to Specter researchers.

“The Notional Finance escrow contract may have been exploited,” PeckShield said, citing Specter’s findings.

Researchers linked the reported fund movements to two Ethereum addresses and said the stablecoins were later exchanged for 689.2 ETH (CRYPTO:ETH).

The Ether was then deposited into Tornado Cash, according to Specter and PeckShield, although the reports did not establish how the funds left the escrow contract.

Notional Finance had not publicly confirmed the incident or disclosed whether users, contracts or remaining assets were affected when crypto.news checked.

The reports also did not establish whether a smart contract flaw, compromised credentials, faulty permissions or another issue caused the suspected exploit.