Unknown trader swallows $55 million loss in wake of crypto market crash Unknown trader swallows $55 million loss in wake of crypto market crash
The BNB Bridge hacker's $63 million position was also liquidated on Venus Protocol.
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Updated: Aug. 18, 2023 at 3:59 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The recent crypto market crash has led to double-digit losses of more than $55 million for an unknown crypto trader on Binance.
Coinglass data showed that the trader traded Ethereum (ETH) against the embattled stablecoin Binance USD (BUSD). Per the data, the position was liquidated at $1,434, containing more than 38,000 ether tokens.
The position was the most significant single liquidation in the last 24 hours across all cryptocurrency exchanges tracked by the data aggregator.
Crypto community members have speculated that a crypto whale or trading firm held the position.
Meanwhile, other notable liquidations across exchanges involving long and short traders existed. One trader lost a $10 million long position on Bitcoin, while several others lost positions worth millions of dollars.
On Aug 17, ETH’s value plunged to as low as $1,560 within minutes, causing severe losses for traders who held positions on the market. While the asset’s value has slightly recovered to $1,677 as of press time, the abrupt price movement across the broader crypto market led to more than $1 billion in losses for crypto traders.
Binance BNB Bridge hacker loses $63 Million.
The wave of liquidation also affected a crypto wallet linked to last year’s exploit of the BNB Smart Chain bridge.
Blockchain security firm Peckshield reported that the wallet lost about $63 million used as collateral to liquidation on Venus protocol. The attacker had used the $63 million in stolen BNB as collateral to borrow 30 million USDT.
With BNB dropping below $220, the collateral positions linked to the wallet automatically got liquidated. About $10.4 million BNB was initially liquidated, followed by $52.3 million.
Meanwhile, it appears Binance was involved in the liquidation effort as the BNBChain Cross Chain bridge wallet deposited over $255 million in BNB to Venus protocol. The lending platform also confirmed that the exploiter wallet had been made healthy without any impact on BNB.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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