ChainThink reports that on March 15, according to on-chain analyst Yujin, the address that received 7,400 ETH from Tornado Cash (suspected to be a hacker) dominated tonight’s collateral liquidation events involving CAKE and THE. This incident resulted in approximately $2.15 million in liquidation losses for Venus Protocol (approximately 1.18 million CAKE and 1.84 million THE), while the address had borrowed around $5.07 million in assets from Venus (2,172 BNB, 1.516 million CAKE, and 20 BTC).
The process is as follows: The address first received 7,400 ETH from Tornado Cash via 0x7a7…234, then collateralized and borrowed approximately $9.92 million in stablecoins (USDT, DAI, USDC) on Aave, and distributed the funds across multiple wallets to purchase THE.
At approximately 20:00 tonight, it allegedly manipulated THE’s price on a CEX (possibly by establishing long positions in advance), then transferred 36.1 million THE tokens to Venus as collateral to borrow assets such as BTC, BNB, and CAKE.
Approximately 40 minutes later, the price of THE suddenly plummeted (likely due to a long liquidation turning into a short). As the collateral value rapidly declined, its position on Venus was forcibly liquidated, further exacerbating THE’s downward trend. Ultimately, the collateral from both wallets was fully liquidated, but approximately $2.15 million in loans remained unpaid, resulting in a bad debt on Venus.
Overall, the address initiated operations with a $9.92 million loan, while only approximately $5.07 million in assets were lent on-chain, indicating no direct on-chain profit. However, it likely profited from its short position on the CEX by triggering on-chain liquidations to depress the price of THE.