Venus Protocol on BNB Chain Exploited: $27 Million Drained

Venus Protocol, one of the largest lending platforms in the BNB Chain ecosystem, came under attack on Tuesday. According to on-chain investigators, a key contract was compromised, leading to the drain of an estimated $27 million in assets.

How the Attack Happened Initial analysis suggests that attackers managed to update the Core Pool Comptroller contract to a malicious address. This address then siphoned tokens, including vUSDC and vETH. The stolen funds currently remain in the attacker’s contract and have not yet been swapped into other cryptocurrencies or fiat, leaving uncertainty about whether this will evolve into a full cash-out.

Community and Security Response Security teams are monitoring the situation in real time, but the Venus community has not yet released an official statement. If the exploit results in permanent losses, it could shake confidence in the protocol.

What Is Venus Protocol? Venus functions as a decentralized money market – users can deposit assets (stablecoins or major cryptocurrencies) to earn interest, while borrowers provide collateral to take out loans. The native token XVS plays a governance and incentive role within the protocol. At its peak, Venus managed more than $7 billion in assets, making it a central pillar of DeFi activity on the BNB Chain.

Summary The Venus Protocol exploit, with $27 million drained, is another reminder that even large and established DeFi platforms remain vulnerable. Whether the attackers cash out the funds, and how the community responds, will play a crucial role in shaping trust in the broader BNB Chain ecosystem.

#BNBChain , #defi , #CryptoSecurity , #blockchain , #CryptoNews

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