A suspected misuse of Notional Finance’s legacy V1 escrow contract reportedly removed about $1.7 million in DAI and USDC, which were consolidated, swapped into approximately 689.2 ETH and sent through Tornado Cash. Blockchain monitors Specter and PeckShieldAlert flagged the activity, while Notional had not issued a detailed explanation, confirmed the attack method or identified the party responsible. Earlier technical analyses, which Notional has not confirmed, attributed the drain to an unchecked uint128 conversion in collateral accounting that allegedly allowed fabricated debt to appear as zero. On-chain records cited in prior reporting put the withdrawals at 69,257.38 DAI and 1,658,524.864122 USDC, worth about $1.73 million, while PeckShield cited lower token amounts. Direct exposure of user funds and the impact on other Notional contracts remained unconfirmed. The reported incident involved an escrow system that remained funded after Notional’s V3 liquidation in November 2025.