The Arbitrum network has experienced a significant security breach involving proxy contracts, resulting in a loss of approximately $1.5 million. According to Cyvers Alerts, the attack appears to have targeted a single deployer account associated with the USDGambit and TLP projects, which may have lost access. The attacker reportedly deployed new contracts and updated ProxyAdmin permissions to gain control. The stolen funds have been transferred cross-chain to Ethereum and subsequently moved into Tornado Cash, a privacy-focused service.