In a complex tangle of smart contracts, governance proposals, and fluctuating crypto prices, the financial health rate of the infamous Binance BNB Bridge exploiter address (0x48…9bec) has fallen below the critical value of 1, hovering at 0.99. This development is of particular interest, given that the address holds a significant collateral of 784,616.10 BNB and a debt position in the form of USDT and USDC totaling $124 million.
The plummeting health rate comes amidst the fall of Binance Coin (BNB) to $207.9, well below the pre-determined liquidation price of $210.80, leading to increased speculation about potential liquidation scenarios.
As per a tweet from blockchain security firm PeckShield: “The health rate of the BNB Bridge Exploiter on Venus is 0.99. BNB has dropped to $207.9. The Venus community has passed a governance proposal to whitelist liquidation of the BNB Bridge exploiter’s position before.”
Liquidation Contingency: The Binance Plan
He Yi, the co-founder of Binance, alleviated some concerns stating, “The BNB collateral of Venus is covered by Binance. When the price of BNB falls, Binance will liquidate it in time. These BNB will not affect the secondary market price, and Binance will be responsible for burning these additional BNB.”
Nevertheless, the crypto community and analysts alike are closely following the situation, speculating on whether Binance CEO Changpeng Zhao, commonly known as CZ, intends to execute the liquidation to remove the illegitimate BNB from the ecosystem.
Renowned analyst Skew remarked regarding the currently ongoing price movements: “”BNB Shorts going at it again + -24% APR (24hr). BNB Aggregate CVDs show takers are net sellers on the day so far. BNB Binance Spot: Quite a lot of spot bids below down to $200, so there will need to be a frenzy of spot selling in order to cause price dislocation or a crash. Large limit buyer has been trying to absorb the sell pressure.”
Crypto influencer MartyParty brought this hypothesis into the limelight, stating, “Is CZ trying to liquidate the Venus loan to burn the 900k illegal BNB? Based on the Venus protocol documentation, the loan would have to be liquidated to burn the illegal BNB. That is the only way to remove it from the ecosystem.”
This liquidity and governance issue comes after an “exploiter” illegally minted 2 million $BNB through a vulnerability in BNB Bridge, which has since been repaired. Of this illegally minted…
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