The Great Heist And The Liquidation Trail
The crypto market recently experienced a significant downturn, resulting in the liquidation of digital assets worth over $1 billion. Among those affected was a crypto wallet connected to a $600 million BNB theft last year. The hacker used the stolen BNB as collateral to secure a $30 million loan in USDT stablecoin. The breach involved the BSC Token Hub, and the identity of the hacker remains unknown.
Data from Peckshield on how the hacker got liquidated is quite interesting
The hacker’s downfall came when the crypto market suffered a massive liquidation of $1 billion within 24 hours. Decentralized finance protocols like Venus, operating on smart contracts, triggered the automatic liquidation of the hacker’s collateral positions. This occurred as the value of BNB dropped below $220. The hacker had borrowed $147.5 million using stablecoins and had deposited 900,000 BNB.
Crypto Market Suffers $1 Billion Liquidation
The crypto market experienced a tumultuous shakeup, resulting in a total liquidation of over $1 billion. Bitcoin traders were hit the hardest, with $499 million worth of Bitcoin liquidated. Ethereum saw approximately $308 million liquidated. These liquidations affected 176,693 traders, with the majority being long liquidations totaling $834.4 million.
Hot Take
The recent liquidation in the crypto market has highlighted the volatility and risks associated with trading and holding digital assets. It serves as a reminder to crypto investors to exercise caution and be prepared for sudden market fluctuations. Additionally, it reinforces the importance of robust security measures to prevent hacking and theft in the crypto space.
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