Venus Protocol, a decentralized lending platform on the BNB Chain, is facing a critical situation as a significant Binance Coin (BNB) position approaches the brink of liquidation.

The position belongs to an entity responsible for a massive hack last year, resulting in the loss of millions in cryptocurrency assets.

With the health rate of the loan position dangerously low, the BNB Chain core team has stepped in to take over the liquidation process, aiming to mitigate the impact on the market.

Last October, a hacker exploited the BNB Chain, causing an estimated loss of $120 to $150 million in cryptocurrency assets.

Leveraging the stolen BNB, the attacker borrowed $150 million worth of stablecoins using Venus Protocol, securing a sizeable position of 900,000 BNB (approximately $210 million). Since the hack, this position has remained precarious.

As cryptocurrency prices plummeted, the health rate of the large loan position dropped to a risky level of around 1.03.

With BNB’s current price at $231, a decline to $220 could trigger the liquidation process. However, the BNB Chain core team is prepared to step in and take over the position to minimize the impact on the market.

In November, a proposal was passed granting exclusive liquidation permissions to the BNB Chain core team.

This decision aimed to mitigate any adverse effects on the broader market if liquidation were to occur. Today, the core team began executing their responsibility by transferring $30 million of USDT from Binance to the designated wallet authorized for liquidating the position.

The hack exploited a vulnerability related to the “iavl hash check” within the BNB bridge, allowing the attacker to manipulate security proofs.

By exploiting this weakness, the hacker minted 2 million BNB tokens valued at $560 million at the time. In response, the BNB Chain team swiftly halted the blockchain, instructing validators to cease operations and impede the attacker’s progress.