Venus Protocol Pauses Operations Following $27 Million Phishing Attack

Venus Protocol has temporarily suspended operations after a major account was compromised in a phishing attack resulting in the loss of over $27 million. The breach occurred when a user granted transaction approval to a malicious address, enabling the unauthorized transfer of funds.

The platform's team confirmed awareness of the suspicious activity and launched an immediate investigation. Security remains a persistent challenge in decentralized finance, with wallet-level exploits posing significant risks despite protocol-level safeguards.

This incident underscores the critical need for user vigilance when interacting with smart contracts. Venus Protocol has committed to providing updates as the forensic examination progresses, though the paused operations may temporarily impact liquidity providers and borrowers on the platform.