Wasabi Hack Drains $5M Cross-Chain Liquidity, BLAST LP Tokens at Risk
The Wasabi hack reportedly stole $5M+ in cross-chain assets, spreading impact across Ethereum, Base, Berachain and BLAST. PeckShield, Blockaid and CertiK say the attacker compromised Wasabi’s deployer wallet via a stolen/compromised admin key, then upgraded contracts to insert a backdoor and drain liquidity from LongPool, ShortPool and Vault.
On BLAST, Blockaid warns that all Wasabi/Spicy LP tokens are at risk, with observed liquidity drainage. Cyvers reports withdrawals that include WETH, PEPE, MOG, USDC, ZYN, REKT, cbBTC, AERO and VIRTUAL; the funds were reportedly converted to ETH and bridged back to Ethereum. Virtuals Protocol is said to have frozen margin deposits, while Wasabi launched an investigation and urged users to avoid interactions.
For traders, the immediate focus is BLAST liquidity and derivative/LP token pricing risk. Any further DeFi liquidity shifts (e.g., new futures listings such as Coinbase’s MEGA) could increase volatility. Note: not investment advice.
Bearish
This Wasabi hack is directly linked to liquidity drainage on BLAST, and Blockaid flags Wasabi/Spicy LP tokens as universally at risk. When LP backing is removed, BLAST-related liquidity and derivative pricing typically deteriorate first in the short term. Cyvers’ fund flow and the reports of frozen margin deposits also raise operational and counterparty uncertainty.
In the short term, traders may see wider spreads, higher volatility, and weaker depth around key liquidity levels. Over the longer term, recovery depends on whether Wasabi/related pools can be restored and whether new liquidity returns. Until then, the event skews sentiment toward caution—more consistent with bearish pressure on BLAST rather than a quick rebound.