Venus Protocol Halts Operations After $27M Phishing Loss

Venus Protocol has paused operations after a phishing attack resulted in a loss of $27 million in assets on the BNB Chain. The attack targeted a whale account, and operations will resume after a security review is completed. PeckShield has confirmed no smart contract vulnerabilities were found. The incident highlights vulnerabilities in decentralized finance user security and may prompt discussions on wallet approval practices and stricter security measures.

Venus Protocol, a decentralized finance (DeFi) platform on the BNB Chain, has temporarily paused its operations following a significant phishing attack. The incident resulted in a loss of approximately $27 million in assets, primarily impacting a whale account. The protocol has confirmed that its smart contracts remain secure, and the suspension is part of an ongoing security review [1].

The attack was reported by PeckShield Security, which initially estimated the loss at $27 million but later corrected this figure to $13.5 million after accounting for the attacker's debt position [1]. The stolen assets, including vUSDT, vUSDC, vXRP, vETH, and BTCB, remain in the hacker's wallet and have not been moved or converted into other tokens [2].

Venus Protocol acknowledged the incident in a statement, confirming that the user was targeted in a phishing scam and that the protocol's smart contracts were not compromised. The platform has suspended operations to conduct a thorough security review and will provide updates as the investigation progresses [1].

The incident underscores the ongoing risk of social engineering attacks in the DeFi space, even among highly technical users. It serves as a reminder to enhance wallet security measures, such as using hardware wallets, limiting transaction approvals, and avoiding suspicious connections [2].

Venus Protocol has previously faced security scrutiny, including an oracle manipulation exploit in May 2021 that resulted in losses of over $145 million [2]. The recent attack has prompted discussions about user security practices and the need for stricter security measures within the DeFi ecosystem.

References:
[1] https://cryptonews.com/news/venus-protocol-user-loses-13-5m-to-a-suspected-phishing-scam-on-bnb-chain/
[2] https://financefeeds.com/venus-protocol-hacked-for-more-than-20-million/