- Venus Protocol is a prominent decentralized finance (DeFi) platform.
- It enables users to lend, borrow cryptocurrencies, and mint stablecoins in a permissionless, decentralized manner.
- Venus operates through smart contracts that automate lending and borrowing.
A Venus Protocol user suffered a staggering $27 million loss in cryptocurrency due to a sophisticated phishing attack.
The attack took place after the user authorized a malicious transaction.
The authorization allowed hackers to siphon stablecoins and wrapped assets from their account.
Due to this, Venus Protocol has temporarily halted operations for a comprehensive security review.
Phishing scams are a growing menace lingering in the crypto space.
Cybercriminals essentially deceive users into granting unauthorized permissions or ask for sensitive information by posing as trusted entities.
The attacker in this incident also exploited this tactic to drain the victim’s balance.
Venus Protocol’s Response
Venus Protocol responded swiftly via X.
They confirmed a user error caused the breach rather than a vulnerability in its smart contracts.
“Right now, yes, that appears to be the case,” the platform wrote.
As a precaution, Venus paused all protocol operations to conduct thorough security checks.
They assure users that updates would follow as the investigation progresses.
Surge in Crypto Attacks Marks September’s Start
The Venus Protocol scam is part of a broader wave of crypto-related exploits as September begins.
On the same day, World Liberty Financial (WLFI) governance tokenholders fell victim to a known phishing wallet exploit.
Meanwhile, decentralized exchange Bunni suspended its Ethereum-based smart contracts after a $2.3 million exploit as well.
These incidents follow a costly August.
Hackers have stolen over $2.47 billion in digital assets in the first half of 2025.
In this context, security experts urge users to exercise caution, verify transaction requests, and adopt robust protective measures for enhanced security. Funds have since been restored.
