Svmuu News Venus Protocol has released the latest progress regarding abnormal activity in the THE pool. In addition to previously suspending THE borrowing and withdrawals, the protocol has reduced the Collateral Factor (CF) of 7 related markets to 0 as a precautionary measure. These 7 markets include BCH, LTC, UNI, AAVE, FIL, TWT, and lisUSD. The remaining markets are unaffected and continue to operate normally.
Venus's preliminary investigation indicates that the attacker gradually accumulated THE tokens through the normal deposit process starting from June 2025, ultimately holding approximately 12.2 million THE, accounting for about 84% of the token's supply cap. Subsequently, the attacker transferred a large amount of THE into the protocol contract to increase the collateral scale and conducted price manipulation through recursive loop operations: depositing THE as collateral to borrow other assets, then using the borrowed assets to purchase more THE on-chain, waiting for the TWAP oracle update to drive up the price.
Venus stated that the investigation is still ongoing, and a full report will be released after the investigation concludes.