Notional Escrow Contract Drained for $1.7M via Tornado Cash

A Notional Finance escrow contract has been exploited for approximately $1.7 million, with the stolen funds converted into Ether and deposited into Tornado Cash.

The affected assets included roughly 69,242 DAI and 1.658 million USDC, totaling around $1.73 million in losses.

Notional's escrow architecture handles various functions including deposits, withdrawals, account balances, collateral for trading, settlement, and liquidations.

The available onchain evidence points to unauthorized withdrawals from the Notional escrow contract, but the precise failure mechanism has not yet been established.