# Arcus Loses $2.23M in USDG Through Accounting Flaw, Covers Shortfall

By Simon Yoon

Canonical URL: https://www.tokenpost.com/news/technology/53681
Published: 2026-11-11T07:42:04.000Z
Updated: 2026-11-11T07:42:04.000Z
Section: Technology

> A newly created account inflated its recorded balance through subaccount transfers. Arcus patched the flaw and resumed withdrawals.

Arcus Labs covered a $2.23 million shortfall after an accounting flaw let a newly created account withdraw Global Dollar (USDG) from its Robinhood Chain trading platform.

The account exploited a flaw in transfers between its own subaccounts, causing Arcus to record a balance larger than the account held. It withdrew 2,234,391 USDG on-chain. A bridge limit blocked another $3 million in withdrawal requests; those requests were never paid out and were later reversed.

The first exploit activity began around 10:07 p.m. ET Nov. 9 (03:07 UTC Nov. 10). Arcus paused platform withdrawals at 11:07 p.m. ET and deployed a fix at 11:37 p.m. ET. Withdrawals resumed at 4:26 a.m. ET Nov. 10, and Arcus Labs covered the shortfall from its treasury at 12:28 p.m. ET.

The incident involved one account and left other users’ balances, positions and orders unaffected. Arcus is tracking the withdrawn funds on-chain.

Arcus is a self-custodial trading protocol for stock tokens, crypto assets and perpetual futures. Its platform is unavailable in the United States.