Venus Protocol, a decentralized lending platform that functions within the BNB Chain ecosystem, has successfully sold off a wallet linked to the bridge breach that occurred last year. The total amount liquidated from the wallet was $63 million, as initially reported by the cybersecurity company PeckShield.
According to the Venus Protocol, “Following today’s market movement, the BNB Bridge exploiter account was made healthy as promised by BNB Chain using whitelisted liquidation without any resulting shortfall or further impact to BNB”.
The narrative dates back to an illicit assault in the prior year, when a cybercriminal absconded with substantial sums of cryptocurrency holdings from the BNB Chain Bridge. Subsequently, the wrongdoer deposited BNB tokens onto the Venus lending protocol, using them as collateral to secure a loan amounting to $150 million in stablecoins.
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The borrowed position, which hinged on 900,000 BNB tokens as collateral, had remained untouched ever since the security breach took place.
Effects on Loan Position Due to Market Fluctuations
Over the course of the past year, the downward trajectory of cryptocurrency valuations has caused a decline in the overall health rating of this excessively collateralized loan position, bringing it perilously close to the threshold at which liquidation becomes imminent. In collaboration with the BNB Chain core team, the Venus team has undertaken deliberate liquidation procedures to avert the automatic liquidation of significant quantities of BNB tokens, which would subsequently flood the market.
Elaboration on Last Year’s Breach Unveils Deliberate Security-Proof Manipulation
The specifics surrounding last year’s exploit reveal a well-calculated manipulation of security proofs orchestrated by the attacker. The malefactor took advantage of a vulnerability associated with the “iavl hash check” within the BNB bridge. This vulnerability provided an avenue for the attacker to mint an astonishing 2 million BNB tokens, valued at a staggering $560 million at the time of the breach.
