🎁 Ace quick missions & earn crypto rewards while gaining real-world Web3 skills. JOIN NOW! 🔥

Venus Protocol Halts Activity After User Falls for $13.5 Million Crypto Scam

Key Takeaways

  • A Venus Protocol user lost $13.5 million after approving a fake transaction in a phishing scam;
  • Venus Protocol stated that the platform’s code was not compromised and attributed the loss to user error;
  • The protocol paused operations briefly for security checks, but confirmed systems were safe.​​

Ace quick missions & earn crypto rewards while gaining real-world Web3 skills. Participate Now! 🔥

Venus Protocol Halts Activity After User Falls for $13.5 Million Crypto Scam

A user on the decentralized lending platform Venus Protocol lost $13.5 million after unknowingly approving a malicious transaction.

The attack did not exploit any flaw in Venus Protocol itself but instead took advantage of a phishing scam, where the user was tricked into giving access to their wallet.

Blockchain security firm PeckShield first reported the incident on September 2. Initially, they estimated the loss at around $27 million, but later adjusted this figure to $13.5 million after accounting for the user’s outstanding debt.

What Are Flash Loans? TOP Ways to Make Passive Income Explained

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

Following community concerns, Venus Protocol addressed the situation on X. The team confirmed that there was no technical issue with the platform and stated that the problem likely came from the user’s end.

When asked directly if this was caused by user error, Venus Protocol replied:

Right now, yes, that appears to be the case. We will keep everyone updated as we investigate.

The platform was temporarily paused while internal security checks were carried out.

Although Venus Protocol’s systems were not breached, the team still decided to suspend operations briefly to make sure nothing else was at risk. They also reassured users that smart contracts remained secure and fully operational.

The scam occurred around the same time as another phishing-related event. Users holding WLFI governance tokens from World Liberty Financial were also targeted in a separate wallet exploit that same day. How? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

Loading...
binance
×
Verified

CLAIM $100 BONUS

Changelly Welcome Reward
Rating
5.0