Venus Protocol pauses after $13.5m phishing attack hits major wallet
One Venus Protocol user apparently suffered a phishing attack, costing the user $13.5 million.
- Venus Protocol paused its smart contract after one user lost $13.5 million
- According to PeckShield, the user fell victim to a phishing scam
- The protocol stated that they would help the user recover their funds
DeFi platform Venus Protocol has paused its smart contract after a major incident. On Tuesday, Sept. 2, PeckShield reported that one Venus Protocol user lost $27 million in a phishing scam. The security firm later corrected the figure to $13.5 million, after accounting for the wallet’s debt position.
According to PeckShield, the user was tricked into approving a malicious transaction. This granted automatic approval for any transaction the attacker initiated, effectively giving the attacker control over all funds in the wallet.
Venus Protocol pauses smart contract
In response, Venus Protocol paused its smart contract as a precautionary measure, stating that it has started an investigation into the incident. The team later stated that the smart contract would remain paused while it helps the user recover the funds. “If the protocol resumes now, the hacker gets the user’s funds,” the team added.
The team clarified that the losses to the user did not come from a smart contract exploit. Rather, the user was the victim of a targeted phishing attack. The team also reassured users with outstanding debts that liquidations are paused.
Pausing a DeFi smart contract is always a controversial move. Affected users appreciate the effort to punish the hackers and deny them the funds. However, some other users see it as going against the decentralized ethos of the DeFi space and as proof that the project is centralized.
Phishing scams are becoming a major problem for DeFi. Attackers often use fake websites disguised as reputable apps to trick users into signing malicious transactions. Between May 2021 and August 2024, users lost $2.7 billion in similar attacks.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
A letter, a trillion dollars: The U.S. Congress officially urges the SEC to greenlight bitcoin investments for 401(k) plans
The US bipartisan initiative is pushing to open the pension market to crypto asset investments. The SEC and the Department of Labor are required to formulate specific regulations. 401(k) plans may soon include crypto asset allocations, potentially triggering major market changes. Summary generated by Mars AI. The accuracy and completeness of this summary are still being iteratively updated by the Mars AI model.

Full Text of Arthur Hayes' Speech at the KBW Summit: Welcoming the Million-Dollar Bitcoin Era
Comparing the surge in Bitcoin price during the pandemic to the scale of credit expansion over the same period, it is estimated that by 2028, the price of one Bitcoin will be approximately $3.4 million.

Trending news
MoreCrypto prices
More








