A Crypto Wallet on Venus Protocol Lost $63 Million due to Liquidation
A crypto wallet connected to the October 2022 BNB Chain $600 million exploit has lost roughly $63 million on the decentralized lending platform Venus Protocol due to liquidation that resulted from the massive bloodbath in the market yesterday.
Key Points:
- The exploiter’s wallet was liquidated of 1.1 million Venus BNB (vBNB) worth around $9.9 million and then approximately 5.6 million vBNB worth $52.3 million.
- The attacker minted two million BNB tokens during the 2022 BNB Chain hack and borrowed $150 million worth of Tether (USDT) and USD Coin (USDC) against Venus.
- BNB’s price decline raised concerns about the loan’s health rate and the potential cascading effects of liquidation on the BNB Chain.
- BNB Chain and Venus passed a proposal authorizing the core team to liquidate the exploiter’s position, preventing a shortfall on Venus and providing support during the process.
- The mass liquidation of the hacker’s wallet occurred when BNB’s price fell below $220, sending 900,000 BNB to Venus.
No Resulting Shortfall on Venus
The liquidation carried out by Venus and BNB Chain did not result in a shortfall on Venus or have any cascading effects on BNB or the broader market. The Venus team confirmed that the BNB Bridge exploiter account was made healthy without any further impact to BNB.
Hot Take
The liquidation of the crypto wallet connected to the BNB Chain exploit highlights the risks and vulnerabilities in the decentralized lending space. While the liquidation process prevented a shortfall on Venus, it also resulted in a significant loss for the wallet owner. This incident serves as a reminder for crypto users to exercise caution and stay informed about the potential risks involved in decentralized finance.
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