An exploit led to a tokenized Google stock being valued at approximately 78 times its actual price, resulting in around $403,000 in bad debt after the attacker borrowed against it.
By Shaurya Malwa Jul 1, 2026, 1:32 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShow- Edel Finance suspended its version-one lending protocol after an attacker exploited the wrapping mechanism of a tokenized Google stock, leading to collateral values being inflated by around 78 times and creating approximately $403,000 in bad debt.
- This incident was not due to faulty price oracles—Chainlink accurately reported Alphabet’s stock price—but rather how GOOGLx converted to and from its wrapped version, wGOOGLx, allowing the attacker to borrow real assets against the inflated collateral.
- Edel has stated it will cover all losses to ensure depositors are not affected, and is launching a redesigned version-two system to mitigate similar attacks, while also offering the attacker a white-hat settlement and working with exchanges.
The lending protocol at Edel Finance was put on hold after a notable exploit where an attacker manipulated the pricing of a tokenized Google stock, resulting in collateral being valued at about 78 times its actual worth and leaving about $403,000 in bad debt, according to the company.
An Update from the Edel Team
— Edel Finance (@edeldotfinance) July 1, 2026
Earlier today, Edel identified and contained an exploit affecting Edel Lending.
The exploit involved manipulation of the wrapped xStocks exchange rate between wGOOGLx and GOOGLx, causing wGOOGLx collateral to be valued at approximately 78x its…
The target of this exploit was a tokenized version of Alphabet's Google stock. Edel Lending accepted wGOOGLx, which is a wrapped version of the tokenized share GOOGLx, as collateral.
A wrapped token is a restructured version of an asset designed to function within a specific protocol, intended to mirror the underlying asset's value. The attacker manipulated the exchange rate between the two, causing wGOOGLx to be valued at about 78 times its rightful value, then utilized this inflated collateral to borrow actual assets from the protocol.
The underlying pricing mechanism itself was not faulty. Edel utilized Chainlink oracles, which are reliable third-party services providing real-world price data to blockchain applications, and these oracles accurately reported the Google share price at around $357.
The vulnerability lay in the wrapping process. The attacker exploited the conversion method between GOOGLx and wGOOGLx, resulting in mispricing of collateral, despite the accurate underlying price feed.
Edel reported that it detected and contained the exploit, subsequently freezing all of its version-one contracts, and warned users against interacting with them.
The team mentioned that it has traced the transactions of the attacker and is coordinating with exchanges, and has proposed a white-hat settlement to the attacker, allowing them to return most of the funds for a fee and without legal consequences, within a specified timeframe.
No depositor will incur losses, as Edel has pledged to absorb the bad debt and restore balances fully. Additionally, a version two with a revamped pricing mechanism is being developed to prevent similar manipulation, with a complete technical analysis to follow.
Though the dollar amount is relatively small, the method aligns with one of the most common types of exploits in DeFi.
Manipulating the prices accessed by a protocol, rather than breaching it directly, ranks as the second most prevalent vulnerability in the OWASP Smart Contract Top 10 vulnerabilities for 2025, while security experts at CertiK identify oracle price manipulation as one of the most frequently encountered attack vectors.
Alongside cross-chain bridges, which have been responsible for some of the year's largest thefts, including the $292 million loss from Kelp DAO in April, price manipulation continues to be a significant concern, with most exploits functioning as intended within the code.
Tokenized equities add to this complexity. Products that tokenize stocks like Google represent some of the fastest-growing sectors in DeFi, introducing another layer between an asset and its price through the wrapping and conversion processes that transform a share into collateral.
Latest Crypto News- 1Europe's MiCA rollout sparks debate over who wins under new crypto rules3 minutes ago
- 2Europe is closing the door on offshore crypto, but it’s leaving the riskiest window open3 minutes ago
- 3French banking giant Crédit Agricole rolls out euro stablecoin, EURXT13 minutes ago
- 4Morpho poised to scale as DeFi infrastructure play, Standard Chartered says16 minutes ago
- 5Ethereum gets a new nonprofit focused on institutional adoption21 minutes ago
- 6Citi slashes 12-month bitcoin, ether targets as ETF flows dry up24 minutes ago
- 7What's next for Bitcoin and stocks? Analysts see a volatile second half1 hour ago
- 8Mysterious Solana project World unveiled as fully onchain prediction market1 hour ago
- 9Bitcoin opens the third quarter in an historical red zone after rare losing first half1 hour ago
- 10Europe is rewriting its landmark crypto rulebook MiCA as hard July 1 deadline passes1 hour ago
Building the Zcash Machine: Tachyon and Quantum Readiness
Building the Zcash Machine: Tachyon and Quantum Readiness
Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
By CoinDesk ResearchJun 30, 2026Commissioned byGenZcashZcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
Why it matters:
Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
View Full ReportMore From Tech