Developers of Altcoin Hit by Major Hack Today Issue Statement: Binance Founder CZ Also Weighs In

Earlier today, according to BSC on-chain data, a key account (0x56…2008) on Venus Protocol (XVS) was compromised.

According to PeckShield, the user was subjected to a phishing attack, approved the attacker’s address, and then transferred their funds. The attack affected approximately $27 million in assets.

Venus Protocol’s security update stated that it had contacted the affected user directly and temporarily halted the protocol to prevent the hacker from withdrawing funds. It also emphasized that this incident was the result of a user-generated attack, not a vulnerability within the protocol itself.

According to the latest statement, Venus Protocol has launched an emergency voting process following the attack. The proposal includes:

• Partial reopening of the protocol to enable debt payments and fund deposits within 5 hours,
• Forced liquidation of the attacker’s wallet and recovery of stolen funds within 7 hours,
• The aim is to complete a full security review within 24 hours and prevent similar attacks.

The protocol will be fully reopened once the security review is complete and updates will be shared via X (Twitter).

Changpeng Zhao, founder of cryptocurrency exchange Binance, commented on the developments, saying, “A quick and accurate response. It’s great that the community has come together to protect users and fight hackers. Congratulations.”

*This is not investment advice.