Phishing Attack Exposes $27M DeFi Weakness, Platform Rebuilds

Venus Protocol, a major lending platform on the BNB Chain, has fully resumed operations following a $27 million exploit that temporarily disrupted services. The platform confirmed the recovery of the affected assets and the restoration of all functionalities, including withdrawals and liquidations, as of 9:58 PM UTC on September 2, 2025 [7]. The disruption had stemmed from a phishing attack that compromised a user's wallet, granting unauthorized access to over $27 million in digital assets [6].

The exploit was first flagged by blockchain security firm PeckShield, which initially reported a $27 million asset drain but later revised the figure to $13.5 million after factoring in the victim's debt position [2]. The attacker gained access through a malicious transaction, approving token transfers to an unknown address (0x7fd8…202a), which then siphoned vUSDT, vUSDC, and other tokens [1]. Multiple cybersecurity firms, including Cyvers and CertiK, confirmed the breach originated from a phishing scam rather than a direct exploit of Venus Protocol’s smart contracts [5].

In response to the incident, Venus Protocol initiated an emergency pause of the platform to prevent further losses and launched a four-stage restoration plan. This plan included partial functionality restoration, asset recovery, a full security review, and the resumption of all services. The community voted unanimously in favor of the proposed measures, with Venus later announcing the successful completion of the recovery process [7].

The protocol’s swift action prevented the attacker from liquidating the stolen assets, which remained locked in the attacker’s wallet. Venus confirmed that the lost funds were recovered under the protocol’s protection and are now secure. The platform emphasized that no other user positions were affected and reiterated its commitment to the security and integrity of the Venus Protocol [7].

Phishing attacks remain a persistent threat in decentralized finance, accounting for nearly 20% of the $2.17 billion in crypto losses reported in 2025, according to Chainalysis. Venus Protocol’s experience underscores the importance of user vigilance in verifying transactions and avoiding malicious links, as even minor oversights can lead to significant financial losses [6]. The platform has pledged to publish a post-mortem analysis once investigations are complete, offering further insights into the attack and mitigation strategies.

Venus Protocol continues to play a critical role in the BNB Chain's DeFi ecosystem, holding approximately $2.7 billion in total value locked (TVL) as of the incident, according to DefiLlama [3]. Despite the recent disruption, the platform remains a leading DeFi money market, facilitating lending, borrowing, and stablecoin minting across the network. The incident, while damaging, has highlighted the resilience and responsiveness of the DeFi community in addressing security threats.

Source: [1] BNB Chain-Based Venus Protocol Drained of $27M on ... (https://www.coindesk.com/tech/2025/09/02/bnb-chain-based-venus-protocol-drained-of-usd27m-on-suspected-contract-compromise) [2] Venus Protocol user suffers $13.5M loss from phishing attack (https://cointelegraph.com/news/defi-trader-loses-27m-phishing-scam-venus-protocol-pauses) [3] Venus Protocol votes to liquidate attacker who stole $13m ... (https://www.dlnews.com/articles/defi/venus-protocol-votes-to-liquidate-attacker-behind-13m-hack/) [4] Venus Protocol User Loses $13.5M to a Suspected Phishing ... (https://finance.yahoo.com/news/venus-protocol-user-loses-13-130314538.html) [5] BNB Whale Drained of $13.5M in DPRK-Linked Phishing Attack (https://finance.yahoo.com/news/bnb-whale-drained-27m-dprk-131603827.html) [6] Crypto user loses $27 million Venus Protocol assets in ... (https://www.mitrade.com/insights/news/live-news/article-3-1088930-20250902) [7] Venus Protocol returns to full operation after resolving $27 ... (https://www.mitrade.com/insights/news/live-news/article-3-1092424-20250903) [8] The protocol has been fully restored and the lost funds ... (https://www.panewslab.com/en/articles/a937d1af-7e75-4fc7-967e-68da743880a1)