In a significant development involving the Binance (BNB) Bridge exploit, the individual responsible for the exploit, who allegedly stole approximately 2 million BNB ($600 million), has been facing possible liquidation. The exploiter has deposited 924,821 BNB ($249 million) on Venus Protocol.
The incident was highlighted by the blockchain analytics platform Lookonchain, tweeting:
The BNB Bridge Exploiter who steal ~2M $BNB($600M) has 924,821$BNB($249M) deposited on @VenusProtocol.
— Lookonchain (@lookonchain) June 7, 2023
The health rate is $1.23.
When the price of $BNB dropped to $220, it will be liquidated.
Hope the exploiter can see it and repay the loan or increase the deposit in time. pic.twitter.com/IpixTo1tvX
The health rate of the deposit currently stands at $1.23. It has been speculated that if the price of BNB drops to $220, the deposit would be liquidated. The health rate, often used in decentralized finance (DeFi), measures the safety of a loan.
A lower rate indicates a higher risk of liquidation. Liquidation is a process where the collateral is sold off to repay a loan when a borrower’s position becomes too risky. This process is often automated in DeFi protocols like Venus Protocol to protect lenders.
Lookonchain expressed hope that the exploiter would see the potential risk and either repay the loan or add more to the deposit to avoid liquidation. If liquidation happens, it could potentially provide some recourse for those affected by the exploit.
Meanwhile, Binance, the firm behind the BNB token, has faced significant challenges. Investors have reportedly withdrawn around $790 million from the crypto exchange Binance and its US affiliate in the last 24 hours, a development that came a day after the US Securities and Exchange Commission (SEC) sued the exchanges.
In the lawsuit, the SEC alleged that Binance artificially inflated its trading volumes, diverted customer funds, failed to restrict US customers from its platform, and misled investors about its market surveillance controls. Binance has stated that it has been cooperating with the SEC’s investigations and intends to “defend” its platform “vigorously.”
Moreover, the SEC complaint has had a direct impact on Binance’s BNB cryptocurrency. BNB fell 0.3% to a near three-month low of $277 after a 9.2% plunge on Monday, marking its worst daily fall since November. At the time of writing, the price of BNB stands slightly above the $257 mark.
