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Illiquid THE token used as collateral in suspected flash-loan drains $3.7M from Venus Protocol on BNB Chain

2h agoMar 15, 2026, 7:02 PMNewsroom AI

On-chain data reviewed by reporters shows a wallet flagged by analysts extracted roughly $3.7 million from Venus Protocol on BNB Chain by depositing THE tokens as collateral and borrowing CAKE, BTCB and BNB [1] [2].

Community sources and chain observers identified the address 0x1a35…6231 as the wallet that collateralized a large amount of THE to take the loans, according to multiple reports of the incident [3] [1].

Several outlets characterize the incident as a suspected flash‑loan exploit that leveraged an illiquid token used as collateral to enable the large borrows, leaving estimated losses at about $3.7 million on the protocol [4] [2].

On-chain analysis and reporting remain ongoing as researchers trace the movement of funds and the full impact on Venus Protocol [1].

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