Edel Finance Halts Lending Protocol After $403,000 Tokenized Stock Exploit

Edel Finance halted its version-one lending protocol on July 1 after an attacker manipulated the wrapping mechanism for a tokenized version of Alphabet's Google stock, inflating collateral values to roughly 78 times their true price and leaving about $403,000 in bad debt.

CoinDesk reported that the exploit targeted wGOOGLx, a wrapped form of the tokenized share GOOGLx accepted as collateral on the platform. The attacker altered the exchange rate between wGOOGLx and GOOGLx, allowing the inflated collateral to secure real assets borrowed from the protocol.

Chainlink oracles correctly reported Alphabet's share price near $357 throughout the incident. The vulnerability lay in the wrapping and conversion steps rather than the price feeds themselves. Edel Finance paused all version-one contracts, which remain frozen, and warned users against interacting with them.

The firm traced the attacker's transactions, coordinated with exchanges, and offered a white-hat settlement within a set window. The company stated it will absorb the full loss so that depositors are made whole. It is deploying a version-two system with a redesigned pricing setup and promised a full technical breakdown.

Price manipulation ranks as the second most common smart-contract vulnerability in the OWASP Smart Contract Top 10 for 2025. The $292 million theft from Kelp DAO in April 2026 occurred through a cross-chain bridge exploit.