Venus Protocol has liquidated over $30 million worth of collateral from a notorious wallet that had borrowed large sums of stablecoins from the lending platform. The liquidation comes as the BNB chain’s native token, BNB, fell to around $209 on Monday morning.
Approximately 6.89 million Venus BNB (vBNB) tokens have been forcefully sold off. This is in line with a governance vote by BNB developers back in November 2022. This type of liquidation occurs when a highly leveraged position drops below a required margin threshold. It can be do to multiple reasons, but likely to declining asset prices.
Recent $30 million liquidation follows a $60 million liquidation
Monday’s $30 million liquidation follows a similar $60 million liquidation across two transactions last week. Together, these enforcement actions have clawed back a substantial portion of funds borrowed by a wallet that had accumulated over $150 million in stablecoins from Venus Protocol by exploiting a loophole.
A recent alert by blockchain security firm PeckShield revealed the liquidation of a crypto wallet containing over $63 million worth of collateral on the lending platform Venus Protocol. Additionally, PeckShield reported that $10.4 million was first liquidated. Soon after an additional $53.2 million worth of collateral from the same wallet was liquidated.
The wallet in focus was linked to a significant acquisition of Binance Coin (BNB) in October 2021. The individual involved in this incident had utilized the stolen BNB as security to secure a $30 million Tether loan from Venus Protocol.
As BNB’s price dipped under $220 recently, it triggered the automatic liquidation of the hacker’s collateral positions. BNB is currently trading at $211, with a 3% drop in value over the last 24 hours.
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