- Venus Protocol launches emergency recovery after $27 million phishing incident.
- Attack involved wallet token approvals without a protocol breach.
- Security reviews and partial protocol recovery are underway.
Venus Protocol faced a $27 million security incident on September 2, 2025, after users lost funds in a phishing attack, prompting immediate safety measures and a governance vote for recovery.
This incident highlights vulnerabilities in DeFi user interactions, impacting market confidence as governance tokens saw a downturn, underscoring the necessity for improved user security measures.
Venus Protocol’s $27 Million Phishing Attack Response
Venus Protocol announced swift action after a phishing attack led to a substantial $27 million loss. Emergency recovery actions commenced with adjustments to partially reactivate the protocol. Bold steps include forced liquidation of the attacker’s wallet.
Significant measures include a temporary pause and a proposed partial recovery within five hours, aiming to secure the platform. The protocol will continue its full restoration once comprehensive security reviews are concluded.
Industry observers underline the swift and comprehensive response from Venus Protocol team.
DeFi Security Risks: Analysis and Market Effects
Did you know? Phishing attacks on similar DeFi platforms have underscored the necessity for enhanced wallet-level security, a fact now underscored by Venus Protocol’s response.
Venus USDT (vUSDT) observed a price of $0.03, with a market cap of $324 million, as reported by CoinMarketCap. Notably, in the past 90 days, the token showed a robust 99.73% increase. However, trading volume remained static with 0% change, reflecting potential stabilization amidst volatile market conditions.
Venus USDT(vUSDT), daily chart, screenshot on CoinMarketCap at 16:40 UTC on September 2, 2025. Source: CoinMarketCap
Experts from Coincu suggest the attack brings attention to the critical interplay between user security and DeFi platforms. Future outcomes could involve tighter regulations and improved user education to mitigate similar vulnerabilities.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/scam-alert/venus-protocol-emergency-recovery-measures/
