The decentralized finance (DeFi) platform Venus Protocol recently faced an unexpected disruption, temporarily suspending its services following a sophisticated phishing scam that drained an estimated $27 million from a single user's wallet. While the incident sent immediate ripples through the crypto community, initial fears of a protocol-level exploit were quickly dispelled, with experts confirming that the Venus Protocol itself remained secure and operational.
Incident Overview and Immediate Fallout
On September 2, Venus Protocol initiated a temporary platform suspension after reports surfaced from blockchain security firm Cyvers regarding a massive suspicious transaction. A single user wallet was targeted, losing substantial assets including $19.8 million in vUSDT, $7.15 million in vUSDC, $146,000 in vXRP, $22,000 in vETH, and 285 BTCB. This significant loss prompted the Venus team to pause operations and activate necessary security protocols as they launched an immediate investigation. Despite the large sum involved, security analysts were quick to clarify that the exploit was not a vulnerability within the Venus Protocol’s core smart contracts, but rather a user-specific compromise.
The Sophisticated Phishing Mechanism
DeFi researchers, including Ignas and SlowMist founder Yu Xian, elucidated the nature of the attack, explaining that the victim was tricked into signing a malicious approval transaction. This deceptive act granted the attacker unlimited permissions to transfer tokens directly from the compromised wallet, effectively bypassing the protocol's inherent security. Experts further suggested potential attack vectors, ranging from a hijacked frontend interface to a "poisoning attack" designed to compromise the victim's computer. The attacker's high level of planning and sophistication was evident through complex funding sources, including the use of Monero exchanges for gas fees, indicating a targeted and well-orchestrated operation. Venus Protocol is reportedly coordinating with the affected whale, with ongoing investigations to ascertain the precise details and final loss figures.
