THENA Breaks Silence on Exploit as THE Token Price Declines Over 13%

In response to growing concerns and discussions regarding the recent events surrounding the $THE token, THENA has issued a statement addressing the exploit and providing clarity on the situation. The incident, which took place on March 15, 2026, has sparked a wide range of reactions, particularly due to the significant price movements and the market’s overall volatility.

THENA has made it clear that the exploit was not related to any vulnerabilities in its own smart contracts or liquidity pools. According to the protocol, the attack stemmed from issues within the $THE market on Venus Protocol. Venus Protocol, a decentralized money market, was identified as a potential risk surface by THENA, which had been actively monitoring suspicious activities within the market for several months. The attack exploited an existing architectural flaw in Venus Protocol, which allowed the attacker to bypass the supply cap on the $THE token.

While Venus had previously identified the vulnerability, it had not been remediated. The attacker leveraged a mechanism known as “donation,” in which they transferred a large amount of $THE tokens to the Venus market, inflating the exchange rate and enabling them to borrow far beyond the protocol’s intended supply cap. The subsequent liquidation of the inflated positions left Venus Protocol with an outstanding bad debt of approximately $2.18 million.

Despite the severity of the incident, THENA reassured the community that its own systems remained secure. The protocol had been working closely with security partners like @zeroshadow_io and @HypernativeLabs, who helped identify early warning signs and coordinated with law enforcement.

$THE Price Declines Amid Market Volatility

The aftermath of the exploit has had a noticeable impact on the price of $THE. As of March 17, 2026, the token has seen a sharp decline of over 13%, with its value dropping from around $0.26 to $0.22. This decline follows a period of significant price volatility during the attack, where the price briefly surged to nearly $4 before collapsing as the liquidation cascade took effect.

Source: CoinCodex

This drop is also accompanied by a reduction in trading volume, which has decreased by more than 60%, signaling a shift in market sentiment following the exploit. The drastic fluctuations in price are a direct result of the attacker’s actions, including price manipulation on centralized exchanges and the liquidation of inflated positions on Venus Protocol.

Despite the negative price movement, THENA has emphasized that its liquidity pools and smart contracts remain unaffected. The protocol plans to implement corrective measures, including updates to its vault systems and further coordination with its security partners to prevent future vulnerabilities.

THENA’s Next Steps and Outlook

THENA has outlined its plans moving forward, including immediate updates to the $THE Single Sided Vaults, which will see a significant increase in Annual Percentage Rates (APR) due to the fees generated during the exploit. This adjustment is set to be implemented later today. Additionally, the upcoming Epoch’s voters will benefit from outsized returns as a result of the extreme volatility experienced on Sunday.

The protocol is also focused on reinforcing its security measures and continuing to monitor the situation closely. Plans for a governance proposal regarding the bad debt resolution are in progress, along with potential changes to the collateral factors and liquidity parameters for the affected assets. These changes are part of an ongoing effort to ensure the protocol’s long-term stability and security.

While the incident has brought challenges, THENA has reassured its community that it is committed to resolving the situation and pushing forward with its mission. The protocol remains dedicated to increasing transparency and further addressing any concerns regarding the security of the ecosystem.