Futureswap Re-Exploited: Hackers Drain $74,000 Using Reentrancy Bug
Another day, another smart contract hack—Futureswap just got hit. Again.
The exploit? A classic reentrancy vulnerability. The result? A cool $74,000 vanished from the protocol's liquidity pools. It's the kind of digital heist that makes you wonder if some DeFi projects treat their code like a beta test for users' real money.
The Bug That Keeps Biting
Reentrancy attacks aren't new. They're the old-school lockpick of the crypto world. Yet, here we are. The flaw lets a malicious contract call back into a vulnerable function before its initial execution finishes, draining funds in a recursive loop. It's basic blockchain security 101, yet it continues to catch builders off guard.
Security as an Afterthought
This incident screams a familiar pattern: innovation sprinting ahead of infrastructure. Teams rush to launch, chasing market momentum, while fundamental security audits get deprioritized. It’s a costly trade-off—$74,000 costly, in this case—and a gift to opportunistic hackers scanning for low-hanging fruit.
The Bullish Silver Lining
For all the cynicism, each exploit hardens the ecosystem. Every hack is a public lesson that forces the entire industry to level up its security game. It pushes for better auditing standards, more robust formal verification, and smarter protocol design. The weak points get exposed and patched, making the foundational layer stronger for the next wave of adoption.
So, while a $74,000 loss stings, it's a rounding error in the grand scheme of a trillion-dollar asset class learning to walk. The real failure isn't getting hacked—it's failing to learn from it. Futureswap now has that chance. Again.
Futureswap is hacked for the third time in one month
The latest attack comes a few days after the platform lost over $395,000 in an exploit that popped up BlockSec’s Phalcon’s radar. The attackers that participated in that exploit stole the funds through multiple changePosition operations. That incident appeared related to unexpected stableBalance accounting changes during position updates that later allowed USDC to be released when removing collateral.
Futureswap also suffered a governance attack in December 2025 that netted attackers at least $830,000. In that incident, hackers used a flash loan to temporarily borrow governance tokens, gaining voting power to pass a malicious proposal that transferred funds from the protocol.
Futureswap has so far lost over $1 million cumulatively across three separate attacks that have Leveraged different vulnerabilities on the platform.
Legacy DeFi protocols under siege
The Futureswap incidents FORM part of the over $27 million lost to hackers who continue to target legacy DeFi platforms into 2026.
Other Arbitrum-based protocols have suffered similar fates in recent weeks. In early January, USDGambit and TLP lost $1.5 million when attackers gained admin access and deployed malicious smart contracts. TMX Tribe suffered a $1.4 million exploit, while the IPOR Fusion USDC vault lost $336,000 through a legacy contract vulnerability, though it has pledged to fully reimburse affected users.
Despite the security breaches that have hit protocols based on Arbitrum, the layer-2 blockchain still holds over $3.1 billion in total value locked in DeFi, which some analysts may say is part of what makes it an attractive target for attackers.
The network has remained near the top position among ethereum Layer-2 solutions in terms of total value locked since launching in 2021.
What’s going on at the Futureswap camp?
Nobody on the Futureswap team has released a statement concerning the exploits. The last post on the platform’s X account dates to 2023, and the protocol is said to have been last audited in 2021.
The case raises difficult questions about responsibility when protocols are abandoned but continue to hold user funds. Security experts recommend that teams either properly deprecate and sunset legacy contracts or conduct fresh security audits and verify source code.
Users, meanwhile, are advised to withdraw assets from older contracts showing signs of abandonment.
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