Edel Finance (Edel Lending V1) hack — July 2026
Incident facts
| Date of incident | |
|---|---|
| Publicly disclosed | July 1, 2026 |
| Target type | Lending protocol |
| Loss | $403,000Price at time of incident |
| Method | Oracle or price manipulationEdel valued wrapped xStocks collateral through the wrapper's live ERC-4626 exchange rate, so a donation of the underlying GOOGLx inflated wGOOGLx about 78-fold within one transaction |
| Chains | Ethereum |
| Outcome | Users reimbursed |
What happened
Edel Finance, a platform for trading and borrowing against tokenised equities, was left with about $403,000 of bad debt on its Edel Lending V1 market on Ethereum on 1 July 2026, after a transaction at 00:24:47 UTC. Edel paused all V1 contracts the same day, said no depositor would bear any loss and that the team would absorb the bad debt and restore balances one for one, and offered the attacker a whitehat settlement with a bounty for returning the remaining funds. TenArmor flagged the attack, tagging Backed Finance, which issues the xStocks tokens involved.
According to Edel and CoinDesk, the attacker manipulated the exchange rate between wGOOGLx and GOOGLx, Backed's tokenised Alphabet shares and their wrapped form, so that wGOOGLx collateral was valued at about 78 times its real worth, and borrowed real assets against it. Chainlink's share price was correct; the lending market read the wrapper's live conversion rate, which a direct donation of GOOGLx could move. The attacker started with a 180,000 USDC flash loan from Morpho Blue.
This registry read the receipt: the attacker's contract received 204,215.57 USDC together with wrapped xStocks, among them 293.12 wMSTRx, 122.20 wSPYx, 99.85 wNVDAx, 62.97 wQQQx and 37.59 wTSLAx. Edel's $403,000 of bad debt is recorded as the loss.
Sources
- Edel Finance on XPrimary · retrieved 2026-10-06
- CoinDeskSecondary · retrieved 2026-10-06
- TenArmor on XSecondary · retrieved 2026-10-06
- DeFiHackLabs exploit reconstructionSecondary · retrieved 2026-10-06
- Ethereum transaction receipt, read by this registryOn-chain · retrieved 2026-10-06
Changes to this entry
- Recorded on 6 October 2026 in a backfill of 2026 incidents that this registry had missed, found through DeFiHackLabs' reproduction list. The amount was checked against the transaction receipt, read by this registry from a public node.
Cite this
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iTokenly Hack Registry, "Edel Finance (Edel Lending V1) hack — July 2026", iTokenly, accessed 2026-10-06, https://itokenly.com/hacks/edel-finance-lending-july-2026https://itokenly.com/hacks/edel-finance-lending-july-2026Permalinks never change. If an entry is renamed, the old address keeps working.
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