Odaily Planet Daily reports that Venus Protocol has released an update regarding unusual activity in the THE liquidity pool. In addition to previously suspending borrowing and withdrawals for THE, the protocol has reduced the collateral factors (CF) of seven related markets to 0 as a precautionary measure. These seven markets include BCH, LTC, UNI, AAVE, FIL, TWT, and lisUSD; all other markets remain unaffected and continue to operate normally.
Venus's preliminary investigation found that the attacker gradually accumulated THE tokens through legitimate deposit processes starting in June 2025, eventually holding approximately 12.2 million THE, representing about 84% of the token's supply cap. Subsequently, the attacker transferred a large volume of THE into the protocol's smart contracts to increase collateral size and manipulated prices through recursive cycles: depositing THE as collateral to borrow other assets, then using the borrowed assets to purchase more THE on-chain, waiting for the TWAP oracle to update and inflate the price.
Venus stated that the investigation is still ongoing, and a full report will be released after the investigation is completed.