During this week’s widespread drop in cryptocurrency values, a person connected to a major DeFi attack faced significant losses due to liquidations amounting to over $60 million.
A wallet related to the theft of around 600 million Binance Coin (BNB) in October 2021 had assets worth $63 million automatically sold off on the Venus Protocol lending platform, as reported by blockchain forensics company PeckShield.
#PeckShieldAlert #BNBBridge Exploiter has been liquidated ~5.6M $vBNB (worth ~$52.3M) https://t.co/pDzlhOK3mE pic.twitter.com/IaGlXCvzy8
— PeckShieldAlert (@PeckShieldAlert) August 18, 2023
The group responsible for the bold BNB hack, which focused on the BSC Token Hub cross-chain bridge, has managed to stay unidentified up until now. In previous instances, the Lazarus Group, connected to North Korea, has been linked to similar attacks.
Cryptocurrency Hacker Caught During Market Slump:
Whoever was responsible used cunning strategies to maximize gains from the stolen funds. They used 900,000 stolen BNB (worth around $197 million) as collateral to borrow $147.5 million in stablecoins on Venus.
But as the crypto market faced a sharp decline and BNB fell below $220, the hacker’s overextended positions were wiped out due to the falling collateral value.
This situation highlights the risky nature of crypto lending platforms. While automated processes are in place, extreme market volatility can quickly erase risky bets.
For those attracted to potential profits through leverage, this situation emphasizes the need for caution. If the hacker had maintained a lower collateral ratio, the massive liquidations might have been avoided.
This event also serves as a lesson for criminals attempting crypto thefts. The transparency of blockchains doesn’t protect them from market dynamics and smart contract logic.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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