Analysis: An address suspected of receiving 7400 ETH from Tornado is allegedly behind tonight's CAKE and THE collateral liquidation event

Odaily Planet Daily reports that on-chain analyst Yu Jin monitored an address that received 7,400 ETH from Tornado (possibly a hacker?). This address led tonight’s collateral liquidation events for CAKE and THE, resulting in approximately $2.15 million in liquidation losses on Venus (1.18 million CAKE + 1.84 million THE). The hacker obtained about $5.07 million in funds from Venus (2,172 BNB + 1.516 million CAKE + 20 BTC):

1. The address first received 7,400 ETH from Tornado at 0x7a7…234, then deposited it into Aave as collateral to borrow 9.92 million USDT (including USDT, DAI, USDC), and transferred funds to multiple wallets to buy THE.

2. Around 8 PM tonight, it likely pumped THE price on a centralized exchange (probably deploying long positions earlier). Then, through two wallets, it deposited 36.1 million THE into Venus and borrowed assets like BTC, BNB, and CAKE.

3. Forty minutes later, THE price plummeted (likely due to the hacker closing long positions), and the collateral on Venus was liquidated, pushing THE’s price further down. Ultimately, the collateral in these two wallets was fully liquidated, but about $2.15 million (1.18 million CAKE + 1.84 million THE) of debt remains unpaid, creating a shortfall for Venus.

Overall, the hacker borrowed 9.92 million USDT but only borrowed assets worth $5.07 million from Venus. While on-chain it doesn’t seem profitable, it’s suspected that the hacker manipulated liquidations on-chain to drive THE’s price down, enabling profit from their positions on a centralized exchange.