Crypto News : Hacker Linked to Massive BNB Theft Gets REKT in $60M Liquidation

The post Crypto News : Hacker Linked to Massive BNB Theft Gets REKT in $60M Liquidation appeared first on Coinpedia Fintech News

Amid this week’s broad cryptocurrency selloff, an alleged hacker linked to one of the largest DeFi exploits was swept up in liquidations totaling over $60 million.

According to an analysis by blockchain forensics firm PeckShield, a crypto wallet associated with the theft of nearly 600 million Binance Coin (BNB) in October 2021 saw collateral worth $63 million automatically liquidated on the Venus Protocol lending platform.

The party behind the brazen BNB hack, which targeted the BSC Token Hub cross-chain bridge, has evaded identification thus far. The North Korea-affiliated Lazarus Group was tied to similar past exploits.

Crypto Hacker Caught in Market Slump

Whoever the culprit is, blockchain data reveals their devious tactics to extract maximum gain from the stolen funds. The hacker leveraged 900,000 stolen BNB, worth about $197 million, as collateral to borrow $147.5 million in stablecoins on Venus.

Yet the pseudonymous profiteer soon fell victim to the savage crypto downturn. As BNB dropped below $220 amid market mayhem, the hacker’s overexposed collateral positions were systematically wiped out.

The episode underscores the high-risk, high-reward nature of crypto lending protocols. While smart contracts automate processes like lending and liquidations, extreme volatility can rapidly erase overleveraged bets.

For DeFi users lured by the potential gains of leverage, such liquidation cascades underline the need for caution. Had the hacker maintained a lower collateral ratio, the mass liquidations may have been averted.

For criminals attempting brazen crypto heists, the event also offers a lesson. The transparency of blockchains provides little cover from the ruthless math of markets and smart contract logic.