CryptoCrime Watch — Tracking Fraud · Protecting Investors

Governance Attack Drains Protocol Treasury of $9.4M

The attacker accumulated voting power through flash loans before passing a malicious proposal.

By Priya Shah, On-Chain Forensics Reporter· May 26, 2026 at 2:00 PM· 4 min read
Governance Attack Drains Protocol Treasury of $9.4M
Governance Attack Drains Protocol Treasury of $9.4M

A small but liquid DeFi protocol's treasury was drained of $9.4 million on Thursday in a governance attack, after the attacker temporarily accumulated voting power through flash loans, passed a malicious proposal, and executed it before the protocol's emergency multisig could intervene.

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