what's USD Gambit?
USD Gambit is a DeFi project deployed on the Arbitrum network, featuring the USDG token. It operates within the ecosystem of decentralized finance protocols, utilizing upgradeable proxy contracts for its smart contract architecture. The project gained attention following a security incident involving a proxy contract exploit, highlighting risks in Layer 2 deployments. USDG serves as its primary token, tracked on platforms like LiveCoinWatch for market data.
USDGambit suffered a $1.5M Arbitrum exploit via ProxyAdmin, with funds moved to Tornado Cash.
Lost approximately $1.5M on the Arbitrum network through a proxy contract exploit where an attacker gained control by updating ProxyAdmin privileges after the deployer lost access to their account on January 5th, 2026, with stolen funds bridged to Ethereum and deposited into Tornado Cash.