Venus plunges 9% in wake of hack fallout…$2.15 million in bad debt incurred

JOON HYOUNG LEE

Summary

The governance token XVS of DeFi lending protocol Venus was reported to have fallen more than 9% at one point amid an exploit.
Venus said a hack led to $2.15 million in bad debt in its THE market, prompting it to mark the token’s collateral value down to zero (0).
Analysts said investor sentiment weakened after evidence emerged that major wallets—including one linked to Justin Sun, founder of Tron (TRX)—moved large amounts of Venus to exchanges.

Forecast Trend Report by Period

XVS, the governance token of DeFi lending protocol Venus, slid sharply on the back of an exploit. The protocol has incurred $2.15 million in bad debt.

According to CoinDesk on the 18th, the price of the BNB Chain-based money market Venus fell more than 9% at one point during the session.

The selloff is attributed to a hacking incident that occurred on the 16th. Venus said the hack generated $2.15 million in bad debt in Venus’s THE market.

The hacker is believed to have accumulated THE tokens over an extended period and then exploited a system vulnerability to inflate their collateral value. After the incident, Venus halted THE borrowing and withdrawals and adjusted the token’s collateral value to “zero (0).”

Venus’s price decline came with a lag, driven by moves by large investors. Analysts said risk appetite weakened after on-chain evidence showed major wallets—including one linked to Justin Sun, founder of Tron (TRX)—transferred large amounts of Venus to exchanges.

XVS