A significant exploit led to a tokenized version of Google stock being overvalued, resulting in substantial debt for Edel Finance.
Edel Finance has halted its version-one lending protocol following an exploit that inflated the value of a tokenized Google stock by approximately 7,700%. This incident has left the platform with around $403,000 in bad debt after the attacker borrowed against the inflated collateral.
The exploit took advantage of the conversion process between GOOGLx, the tokenized stock, and its wrapped version, wGOOGLx, which was accepted as collateral. While the underlying price data from Chainlink oracles accurately reflected Alphabet’s stock price, the attacker exploited the wrapping mechanism to create a mispricing, allowing them to borrow real assets based on the inflated value.
An Update from the Edel Team: Earlier today, Edel identified and contained an exploit affecting Edel Lending.
— Edel Finance (@edeldotfinance) July 1, 2026
In response to the attack, Edel Finance has committed to covering the losses to ensure that depositors are not impacted. The company is also developing a version-two system with enhanced security measures to prevent similar incidents in the future. Additionally, they are offering a white-hat settlement to the attacker, allowing for the return of most stolen funds without legal repercussions.
