Blockaid detects ~$1.01M Avalanche vault exploit

Flagging an ongoing exploit Blockaid detected targeting a Tranche Vault related to Fence Finance and Valinor Digital on Avalanche, with approximately $1.01 million in USDC drained across two transactions. ~$1.01 million in USDC drained from the vault so far across ~2 transactions. The attacker used a flash loan to mint artificially inflated tranche shares, then redeemed them against the vault's remaining USDC reserves. Key exploiter addresses (0x6FF1..., 0xF09D...), the victim vault (0xE25C...), and exploit transactions (including 0x3f6b23292...) have been identified on Snowtrace. Beyond the immediate technical mechanics, this incident highlights a misconception around onchain fund recovery.

Also reported by DeFi Planet.

Source: TokenPost