Venus Protocol Accrues $2.15 Million Bad Debt Due to CAKE / THE Liquidation Cascade, Suspected Manipulation by Address 0x7a7

WuSaidBlockchainW · 2026-03-16T02:29:01+00:00

A wallet address suspected of being the mastermind behind a liquidation cascade event received 7,447 ETH from Tornado Cash, borrowed stablecoins, and deposited a large amount of THE. The incident caused THE's price to collapse, leading to $2.15 million in bad debt at Venus, with the attacker extracting approximately $5.07 million in assets.

WuSaidBlockchainW

2026-03-16 02:29:01

Abstract generation in progress

According to Onchain Lens monitoring, a wallet address “0x7a7” received 7,447 ETH (approximately $16.29 million) and is suspected to be behind the cascade of liquidations involving CAKE / THE on Venus Protocol. This address borrowed $99.2 million in stablecoins using ETH as collateral on Aave to accumulate THE. About 40 minutes after depositing 36.1 million THE into Venus and borrowing BTC, BNB, and CAKE, the THE price collapsed, triggering liquidations. This event resulted in $2.15 million in bad debt for Venus (118 million CAKE and 1.84 million THE yet to be repaid), and the attacker extracted approximately $5.07 million in assets, with their true profit likely coming from short positions on CEX.

CAKE7,36%

ETH7,72%

BTC3,38%

BNB3,61%

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