Edel Finance Reports $403,000 Bad Debt After Attack, Plans to Resume Withdrawals Within 48 Hours

Edel Finance said an attack left the lending protocol with about $403,000 in bad debt, and it plans to restore normal operations, including withdrawals, in about 48 hours. According to Foresight News, the team paused all V1 contracts after detecting abnormal activity, and Edel V1 remains suspended. Edel Finance said users will not bear losses from the incident, adding that the team will absorb the bad debt and restore affected depositors’ balances on a 1:1 basis. The team said it has traced the attacker’s transaction records and is coordinating with exchanges and ecosystem partners. It also said it has sent the attacker a formal white-hat settlement proposal, requesting the return of remaining funds within a specified deadline in exchange for a security bounty. Foresight News previously reported that CertiK monitored an attack on Edel Finance today in which the attacker allegedly manipulated a mechanism tied to wGOOGLx collateral pricing that depended on the attacker’s GOOGLx balance, borrowing funds and stealing about $204,000.