Venus Protocol Pauses as vUSDT Holdings May Have Been Drained in $27M Phishing Attack

  • Attack overview: A phishing approval allowed attackers to drain approximately $27M in Venus vUSDT and vUSDC.

  • Response: Venus Protocol paused the protocol to run security reviews and notified the community on its official channels.

  • On-chain data: Compromised wallet held ~ $19.8M vUSDT and $7.15M vUSDC before funds were siphoned.

Venus Protocol phishing attack: $27M stolen after a phishing approval; Venus paused the protocol for security reviews. Learn what happened and how to secure wallets now.

Venus Protocol paused the platform to conduct security reviews but said the $27 million loss was not linked to a flaw in its contracts.

What happened in the Venus Protocol phishing attack?

Venus Protocol phishing attack occurred when a DeFi user approved a malicious transaction that granted an attacker permission to transfer assets, resulting in roughly $27 million stolen. Venus confirmed the incident appears to be a compromised wallet approval and paused the protocol while security reviews proceed.

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A blockchain security firm, PeckShield, reported that a single user lost approximately $27 million after interacting with a phishing contract. On-chain traces indicate the wallet held roughly $19.8 million in Venus USDT (vUSDT) and $7.15 million in Venus USDC (vUSDC) before funds were moved out following the malicious approval.

The attacker used a phishing flow to trick the user into signing an approval transaction that granted token-transfer rights. Once approval was granted, the attacker executed transfers to external addresses and wrapped assets were moved off-chain. On-chain analytics show the pattern of approval → approvals exploited → asset transfers consistent with phishing drains.

Venus paused borrowing and other protocol functions as a precautionary measure while conducting security reviews. The protocol’s official statement (posted on its social channels) emphasized that the incident appears related to user error or a compromised wallet, not a smart-contract vulnerability. The pause aims to protect users while auditors examine the situation.


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Source: https://en.coinotag.com/venus-protocol-pauses-as-vusdt-holdings-may-have-been-drained-in-27m-phishing-attack/