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Arcus covers $2.23 million shortfall after subaccount accounting bug

Arcus, a perpetuals exchange on the Robinhood Crypto chain, covered a $2.23 million shortfall from its treasury after an internal accounting bug allowed a single account to withdraw unbacked USDG.

Screenshot of the Arcus Incident Report detailing the November 9, 2026 accounting bug alongside the Arcus logo.
Image: @DegenerateNews

Perpetuals exchange Arcus has covered an approximate $2.23 million shortfall from its treasury after an accounting bug allowed an unauthorized user to withdraw funds, the project disclosed in an incident report published November 10, 2026.[3][1][2]

According to the exchange's incident report, the issue occurred on November 9 at roughly 10:07 p.m. ET, when a newly created account exploited a flaw in how the platform handled transfers between a user's own subaccounts. Under specific conditions, the glitch allowed the account to record an inflated balance far exceeding its actual holdings and request withdrawals against the phantom funds. A total of 2,234,391 USDG was successfully withdrawn on-chain before Arcus halted withdrawal operations.[3]

A second withdrawal attempt of $3 million was intercepted by the bridge's on-chain rate limits, preventing any payout before the transfer was ultimately reversed. Arcus stated that it identified and patched the vulnerability within one hour. Arcus Labs replenished the missing funds from its treasury, confirming that no other user accounts, balances, open positions, or orders were affected, and that trading and withdrawals have resumed normal operations.[3]

Key facts

  • On November 9, 2026, at around 10:07 p.m. ET, an accounting bug in subaccount transfers on Arcus let a new account inflate its balance and withdraw funds.
  • A total of 2,234,391 USDG was withdrawn on-chain before the exchange halted withdrawals.
  • An additional $3 million in requested withdrawals was blocked by the bridge's on-chain rate limit and subsequently reversed.
  • Arcus detected and resolved the accounting bug within one hour.
  • Arcus Labs covered the full shortfall from its corporate treasury, leaving other user balances, positions, and orders unaffected.

Sources · 3 sources

  1. TW

    The Wolf Of All Streets@scottmelkerPost on X ·

    ARCUS, A PERPS EXCHANGE ON ROBINHOOD CHAIN, COVERS A $2.23M SHORTFALL FROM ITS TREASURY AFTER A BUG LET A USER WITHDRAW FUNDS https://t.co/YAV8OawkeJ

    Open source
  2. CB

    Crypto BriefingArticle ·

    Arcus fixes accounting bug, covers approximately $2 million shortfall from treasury Arcus' swift bug resolution and treasury coverage highlight its commitment to user trust but raise concerns about system robustness and future resilience. The post Arcus fixes accounting bug, covers approximately $2 million shortfall from treasury appeared first on Crypto Briefing .

    Open source
  3. DN

    DEGEN NEWS@DegenerateNewsPost on X ·

    NEW: @RobinhoodCrypto CHAIN PERPS EXCHANGE @arcus_xyz SAYS AN ACCOUNTING BUG LET ONE ACCOUNT WITHDRAW $2.23M $USDG IT WASN'T ENTITLED TO ARCUS SAYS IT COVERED THE FULL SHORTFALL FROM ITS TREASURY AND NO USER BALANCES WERE AFFECTED https://t.co/QclosVfSJl

    Open source