Security firm Blockaid has issued an alert regarding an attack on Aurellion Labs, a project within the Arbitrum ecosystem. The attacker exploited vulnerabilities in the project's unverified EIP-2535 Diamond Proxy contract, specifically targeting the unprotected initialize() function and uninitialized Diamond. This breach resulted in the theft of approximately $456,000. The affected contract was deployed in March 2026, and the attack occurred just minutes ago. Blockaid has disclosed the attacker's address, the compromised contract, and related transaction hashes.