defibricks @defibricks - Twitter Profile

4 months ago

BREAKING: Tornado Cash-Funded Address Triggers $2.15M Bad Debt on Venus Protocol via $THE Token Manipulation According to on-chain analyst @EmberCN, an address that received 7,400 $ETH from Tornado Cash (possibly linked to a hacker) triggered a major liquidation event on Venus Protocol tonight (March 15, 2026), causing about $2.15 million in bad debt The address (via 0x7a7…234) got 7,400 ETH from Tornado Cash → deposited it on Aave to borrow ~$9.92 million in stablecoins (USDT, DAI, USDC) → spread funds across wallets to buy a large amount of THE. Manipulation steps: - Around 8:00 PM, they likely pumped $THE price on centralized exchanges (CEXs, possibly while holding long positions) → deposited 36.1 million THE into Venus as collateral via two wallets → borrowed assets like $BTC, $BNB, $CAKE (total borrowed from Venus: ~$5.07 million - 2,172 $BNB, 1.516 million $CAKE, 20 $BTC). - About 40 minutes later, $THE price crashed (suspected closing longs and opening shorts) → collateral value dropped fast → Venus force-liquidated positions → this accelerated the price drop further. Both wallets were fully liquidated, but Venus was left with ~$2.15 million unpaid debt (1.18 million $CAKE + 1.84 million $THE). No direct on-chain profit from the ~$5M borrowed assets, but likely profited from short positions on CEXs by triggering the chain liquidations to crash THE price. @VenusProtocol has paused borrowing/withdrawing THE to investigate. This highlights risks in low-liquidity assets on lending protocols. According to the team, the decision was made as a precautionary measure to prevent further potential abuse. The suspension of these functions will remain in effect until the investigation is completed. Importantly, all other markets on Venus Protocol remain unaffected and will continue operating normally. $THE crashed nearly 65% due to this accident!

NFTevening's tweet photo. BREAKING: Tornado Cash-Funded Address Triggers $2.15M Bad Debt on Venus Protocol via $THE Token Manipulation

According to on-chain analyst @EmberCN, an address that received 7,400 $ETH from Tornado Cash (possibly linked to a hacker) triggered a major liquidation event on Venus Protocol tonight (March 15, 2026), causing about $2.15 million in bad debt

The address (via 0x7a7…234) got 7,400 ETH from Tornado Cash → deposited it on Aave to borrow ~$9.92 million in stablecoins (USDT, DAI, USDC) → spread funds across wallets to buy a large amount of THE.

Manipulation steps:

- Around 8:00 PM, they likely pumped $THE price on centralized exchanges (CEXs, possibly while holding long positions) → deposited 36.1 million THE into Venus as collateral via two wallets → borrowed assets like $BTC, $BNB, $CAKE (total borrowed from Venus: ~$5.07 million - 2,172 $BNB, 1.516 million $CAKE, 20 $BTC).

- About 40 minutes later, $THE price crashed (suspected closing longs and opening shorts) → collateral value dropped fast → Venus force-liquidated positions → this accelerated the price drop further.

Both wallets were fully liquidated, but Venus was left with ~$2.15 million unpaid debt (1.18 million $CAKE + 1.84 million $THE). No direct on-chain profit from the ~$5M borrowed assets, but likely profited from short positions on CEXs by triggering the chain liquidations to crash THE price.

@VenusProtocol has paused borrowing/withdrawing THE to investigate. This highlights risks in low-liquidity assets on lending protocols. According to the team, the decision was made as a precautionary measure to prevent further potential abuse. The suspension of these functions will remain in effect until the investigation is completed.

Importantly, all other markets on Venus Protocol remain unaffected and will continue operating normally.

$THE crashed nearly 65% due to this accident!

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