Flash-Loan Attacker Drains About $1 Million in USDC From Avalanche-Based Tranche Vault

An attacker pulled roughly $1.01 million in USDC out of a Tranche Vault on Avalanche on the evening of Tuesday, Oct. 27, ET, by using a flash loan to inflate the vault’s share count before cashing out, security firm Blockaid said in an alert on X . Blockaid called the exploit “ongoing” and said the vault was “related to” Valinor Digital and Fence , tagging both companies’ X accounts. The alert did not say which entity operates the vault, and neither company had commented publicly on the incident at the time of writing. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . How the Attack Worked A flash loan is a large, uncollateralized loan that must be borrowed and repaid inside a single blockchain transaction.

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