A DeFi Attacker Inflated a Tokenized Google Stock 7,700% to Drain a Lending Pool

Edel Finance paused its lending protocol after an attacker manipulated how a wrapped tokenized Google share was priced, inflating collateral about 78 times and leaving roughly $403,000 in bad debt.

A DeFi Attacker Inflated a Tokenized Google Stock 7,700% to Drain a Lending Pool Edel Finance paused its lending protocol after an attacker manipulated how a wrapped tokenized Google share was priced, inflating collateral about 78 times and leaving roughly $403,000 in bad debt. Aaron Rafferty July 01, 2026 Key Takeaways: Edel Finance paused its version-one lending protocol after an attacker inflated a tokenized Google share used as collateral to about 78 times its real value. The price oracles were correct. The flaw was in how the token was wrapped and unwrapped, which let the attacker borrow real assets against phantom collateral, leaving about $403,000 in bad debt. Edel says it will cover the losses so depositors are made whole, and has offered the attacker a white-hat settlement. Edel Finance, a platform for trading tokenized stocks, paused its lending protocol on June 30 after an attacker exploited how it priced a tokenized version of Google's stock, borrowing against collateral inflated to roughly 78 times its true value and leaving about $403,000 in bad debt. The interesting part is what did not break. Edel used Chainlink oracles, the standard services that feed real prices onto a blockchain, and those correctly reported Google's share price around $357. The weakness was in the wrapping mechanism. The protocol accepted wGOOGLx, a wrapped form of the tokenized share GOOGLx, and the attacker manipulated the exchange rate between the two so the wrapped token was valued far above what it should have been. Then they used that phantom collateral to borrow real assets and walk away. Edel says it caught and contained the exploit, froze its version-one contracts, and told users not to touch them. No depositor will lose money, the team said, because it is absorbing