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Venus Protocol exploited for $3.7M through supply cap manipulation: On

Thedefiant • March 16, 2026

Venus Protocol on BNB Chain has been hit with a $3.7 million exploit involving manipulation of the platform's supply cap mechanisms. According to on-chain data, the threat actor used Thena (THE) tokens to bypass maximum supply restrictions and borrow several different digital assets from the protocol.

Analysts suspect the attack leveraged either flash loan tactics or price manipulation to artificially inflate the collateral's value. Following the incident, Venus Protocol suspended borrowing and withdrawal functions for the THE token as a precautionary measure, though other markets on the platform remained unaffected.

Sources: Cointelegraph

This article was generated automatically by The Defiant’s AI news system from publicly available sources.

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This article is one source in a clustered incident — the cluster page carries the summary, timeline and every other outlet covering it.

Venus Protocol Exploit Results in $3.7M Loss through Supply Cap Manipulation On March 15, 2026, Venus Protocol experienced a significant exploit resulting in a loss of $3.7 million. The attacker manipulated the supply cap of THE tokens, accumulating 84% of the total supply since June 2025. By transferring these tokens to the protocol contract, the attacker inflated the collateral value and engaged in recursive price manipulation using TWAP oracle delays. As a precaution, Venus Protocol suspended borrowing and withdrawal functions for THE tokens, while other markets remained operational. A preliminary analysis indicates that the attack exploited low on-chain liquidity and price manipulation tactics. Venus Protocol has committed to transparency and plans to release a full report following the investigation. 4 sources 66

Venus Protocol exploited for $3.7M through supply cap manipulation: On

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