You Won’t Believe How $3.7M Vanished in a Crypto Gulag?

by

Like a forgotten gulag camp in the desert of Bitcoin and BNB, the Venus Protocol has just become the latest victim of greed. A shadowy hacker, cloaked in code, carries out a flash‑loan coup that turns a digital lending platform into a playground for the unscrupulous.

On‑chain chronicles reveal that the perpetrator, a lone wolf with an address beginning with 0x1a35…6231, wrestled the mighty Thena (THE) token supply cap with the patience of a prisoner shepherding his own herd. Over nine months, he accumulated a staggering 84 % of the 14.5 million token reserve, gathering the capital required for a horror show.

How the Venus Protocol Attack Happened?

The plot thickens when the attacker bypassed the standard deposit process, sliding THE tokens through the contract’s backdoor as if slipping a contraband loaf through a guarded pantry. The result: a monstrous 53.2 million‑token collateral position-a staggering 3.7 times the official limit. In other words, the protocol’s defenses cracked like a tuneless prison gate.

“On‑chain data shows Venus Protocol was suspected to suffer a flash‑loan attack. The attacker address 0x1a35…6231 obtained about 20 BTC, 1.5 million CAKE, and 200 BNB, totaling over $3.7 million, after using a large amount of THE as collateral on Venus to borrow CAKE, BTCB, and…” – Wu Blockchain (@WuBlockchain) March 15, 2026

Borrowing and Price Manipulation

With an inflated collateral, the rogue thief lunged for riches: 20 BTC, 1.5 million CAKE, nearly 200 BNB, and 1.58 million USDC. It was a loop of deceit-deposit THE, borrow, buy more THE, then wait for the TWAP oracle to inflate its value. The price surged from $0.263 to $0.563 before the market collapsed to a spectral $0.22 in liquidation. Imagine a doomed circus ride that ends with nothing but the echo of a farcical balloon.

Venus Protocol Responds

The custodians of Venus now pause borrowing and withdrawals of the rebellious token THE, alongside several other liquid markets-BCH, LTC, UNI, AAVE, FIL, and TWT-for safety. All other markets remain operational, but the sense of unease runs like a cold draft through the halls of the protocol.

A thorough report will be released once the full analysis concludes, apparently a formal acknowledgement of chaos with a promise of transparency-like a diary entry from a weary prison guard. The analysis will be released, and we will see whether history repeats itself, or if this is merely a tragedy in a modern digital gulag.

Read More

2026-03-15 22:06