Venus Protocol Bounces Back: Full Operations Resume Following $27M Exploit Resolution

DeFi's resilient lending platform proves its mettle after facing down a multi-million dollar threat.

How It Unfolded

The protocol identified and neutralized a $27 million vulnerability—swift action prevented what could have been a catastrophic drain. No user funds were ultimately compromised beyond the initial exploit.

Back in Business

All lending, borrowing, and staking features are now live again. The team implemented enhanced security measures, conducting thorough audits before flipping the switch back to full capacity.

Market Response

Traders barely blinked—native token prices held steady, proving once again that in crypto, a well-handled crisis is just another Tuesday. Because nothing says 'trustless' like hoping the team patches holes after millions vanish.

Venus Protocol’s proposed plan for restoration approved

Venus Protocol proposed a plan to its community to determine the immediate steps for handling the crisis. The four-stage plan was outlined as follows: partial restoration within five hours, recovery of stolen funds within seven hours, a full security review within 24 hours, and the eventual resumption of all services once checks were completed.

Voting ended at around 5 PM UTC, with the community voting “100% to proceed,” the protocol announced. “We are so thankful for your support, and will proceed with the execution,” the team wrote on X.

By 9:58 PM UTC, Venus confirmed that the plan had been completed successfully. 

“Venus Protocol has been fully restored, withdrawals and liquidations resumed. The lost funds have been recovered under Venus’ protection,” the platform said.

Update: Venus Protocol has been fully restored (withdrawals and liquidations resumed) as of 9:58PM UTC. ✅

The lost funds have been recovered under Venus' protection. ✅ https://t.co/y2uUwPqmtb

— Venus Protocol (@VenusProtocol) September 2, 2025

The exploit stemmed from a phishing incident that tricked a Venus user into approving a malicious transaction, which granted an attacker access to the user’s $27 million worth of digital assets. 

Phishing scams imitate trusted platforms with near-identical websites made to lure users into entering credentials or approving harmful transactions.

According to Cyvers, a blockchain security firm, this particular attack was launched using a domain closely resembling a legitimate site. The small differences are, more often than not unnoticed when victims rush through approvals for token launches or airdrops. Once the user approved the transaction, their wallet was drained.

Venus explained that its quick response prevented the attacker from moving the stolen assets out of their wallet. 

“Fortunately, the suspicious transaction was identified almost immediately, and Venus Protocol was paused. Because of this quick response, the stolen funds remain locked in the attacker’s wallet and this is why Venus is currently paused,” the platform wrote in its emergency update.

Venus to publish full post-mortem after analysis

Venus Protocol said it WOULD publish a full post-mortem of the incident once investigations are complete. The platform also thanked its users for their trust and patience during the suspension of services. 

“Hackers have no place on Venus. Thank you for your patience, understanding, and continued trust as we work tirelessly to protect our users, safeguard our community, and uphold the integrity of the Venus Protocol. The community is the foundation of Venus, and we will always act in your best interest,” the team stated.

Phishing attacks are still atop of the most common threats in decentralized finance, accounting for almost 20% of the $2.17 billion stolen from crypto services in 2025, according to Chainalysis’ mid-year report.

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