Avalanche Tranche Vault tied to Fence Finance and Valinor drained of 1.01M USDC in flash-loan exploit
Tranche Vault on Avalanche (Fence Finance / Valinor Digital)
On Oct 27 2026 (about 00:00 UTC Oct 28) an attacker drained 1,013,353.61 USDC from a Tranche Vault on Avalanche that Blockaid linked to Fence Finance and Valinor Digital. Blockaid said the attacker used a flash loan to mint inflated tranche shares and then redeemed the vault's remaining USDC across about two transactions; a later balance check showed no USDC left in the vault contract. The stolen funds were bridged to Solana. Neither Fence Finance nor Valinor Digital had published a statement, and whether the vault was paused or fixed was unconfirmed.
Why this severity: About 1.01M USDC taken from lenders in the vault, which was left with no USDC; no team statement yet
- Started
- Oct 27, 2026
Affected
- Tranche Vault contract 0xE25CB545Bdd47a8Ec2d08001cb5661B00D47621a on Avalanche
Fixed in
No fixed release yet
Timeline2
Advisories1
News & write-ups2
Posts1
🚨Blockaid detected an ongoing exploit on Tranche Vault related to @fence_finance and @valinordigital on Avalanche. An attacker used a flash loan to mint inflated tranche shares, then redeemed the vault's remaining USDC. ~$1.01M drained from the vault so far across ~2 txs. 🧵
Notes & caveats
Blockaid did not say how the vault relates to Fence Finance or Valinor Digital. Only depositors in this vault are affected; there is nothing for other users to patch.
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