Venus Protocol Halts After User Falls for Crypto Scam

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

Written by Aaron S.,

Editor-In-Chief

Last Updated: September 02, 2025

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.

Don't miss out - BYDFi new user bonus is now LIVE! Join BYDFi & unlock up to $2,000 in rewards. Claim Bonus! 🎁

BITDEGREE IN YOUR SOCIAL FEED

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.

Best Crypto Analysis Indicators Explained (Beginner-Friendly Animation)

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.