Defi

Security incidents tagged Defi. Newest first.

1 Defi incident in the last 12 months

Critical 4 · High 3 · Med 2 · Low 1 · Update ½Severity-weighted: critical 4 · high 3 · medium 2 · low 1 · update ½LessMore

Oct 27MediumAvalanche Tranche Vault tied to Fence Finance and Valinor drained of 1.01M USDC in flash-loan exploitNo fix needed
Tranche Vault on Avalanche (Fence Finance / Valinor Digital) No fix needed
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.
Open incident →

Avalanche Tranche Vault tied to Fence Finance and Valinor drained of 1.01M USDC in flash-loan exploit
Blockaid
@blockaid_
🚨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. 🧵
Oct 28, 2026view on x