A 924,830 BNB (~$215 million) position on Venus Protocol, owned by a hacker who hacked BNB Chain in October 2022, is on the verge of liquidation.
Last year, a BSC Token Hub exploit led to a double-spending attack. After that, he deposited the received funds into the Venus lending protocol to open positions in the amount of $147 million in USDT and USDC stablecoins.
The developers had to stop the blockchain to fix the vulnerability and conduct a hard fork. As a result, the hacker managed to withdraw digital assets for about $100 million, the rest of the funds were blocked in the contract.
BNB Chain submitted a proposal in November to whitelist the hacker’s position for elimination, according to a Venus Protocol statement. The community accepted the initiative by a majority vote.
In November 2022, @BNBCHAIN submitted a governance proposal which was passed by the community to whitelist liquidation of the BNB Bridge exploiter’s position exclusively to @BNBChain core team for the purpose of securing the misappropriated assets and preventing any further…
— Venus Protocol (@VenusProtocol) June 12, 2023
The chain’s management has pledged to bear the costs if an open deal approaches the forced closure threshold. The BNB Chain team initially funded a $30 million position.
At the time of writing, the “health rating” of the burglar’s collateral is at 1.06, according to DeBank data. When the indicator drops to one, the position is automatically liquidated by the protocol.
The collateral volume began to decline along with the fall in the BNB price. Since October 2022, the price of the asset has fallen from its highs of $354 to $233.
Recall that in June 2023, users of the decentralized wallet Atomic Wallet lost $35 million as a result of a hack. Later, the hacker sent the assets to the Sinbad.io cryptocurrency mixer, which is used by the North Korean Lazarus Group.
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