Bonzo Finance lost about $9 million in an oracle exploit. Manipulated SAUCE prices enabled excessive borrowing on Hedera. Lending services remain paused during recovery efforts. Bonzo Finance
Bonzo Finance has confirmed that its Hedera-based lending protocol suffered an oracle exploit that resulted in losses of roughly $9 million. The incident occurred on July 11 after attackers manipulated a third-party price oracle rather than exploiting Bonzo Finance smart contracts. Following the breach, the protocol paused Bonzo Lend and its rewards program while recovery efforts continue.
According to Bonzo Finance, the attacker deposited 250 SAUCE tokens worth only a few dollars as collateral. The manipulated oracle then reported an inflated SAUCE price, increasing its value by approximately 12 orders of magnitude.
Just In: Hedera’s largest lending protocol Bonzo loses $9M in oracle exploitHedera-based lending protocol Bonzo Lend disclosed that it lost approximately $9.05 million in an oracle exploit. Bonzo said a flaw in Supra’s signature verification allowed an attacker to manipulate… pic.twitter.com/zi2BsWBXyM
— Wu Blockchain (@WuBlockchain) July 11, 2026
Using the false valuation, the attacker borrowed nearly 6.6 million USDC and 34.5 million Wrapped HBAR (WHBAR) from the lending pool. Bonzo Finance stated that the vulnerability originated from a flaw in Supra’s signature verification system rather than its own lending contracts.
Blockchain researcher Specter initially tracked the stolen assets as they moved toward Ethereum before identifying Bonzo Finance as the affected protocol. The project later confirmed the findings and coordinated with Bonzo Labs and the Bonzo Finance Foundation to investigate the exploit.
A second wallet borrowed approximately $1 million during the attack window but later identified itself as a white-hat participant. The wallet owner said the funds would be returned to assist the recovery process.
Meanwhile, Bonzo Finance has suspended lending operations and its points program while developers assess the damage, strengthen security measures, and coordinate remediation efforts across the Hedera ecosystem.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.<p>The post Bonzo Finance Loses 9M Dollars in Hedera Oracle Exploit first appeared on Coin Crypto Newz.</p>
