|
Getting your Trinity Audio player ready...
|
- Venus recovered $11.4M stolen from a phishing attack in under 12 hours.
- Security firms PeckShield, Hexagate, and Hypernative Labs aided the rapid response.
- XVS token rebounded, signaling community confidence in protocol security.
Stay ahead with real-time updates and insights—Join our Telegram channel!
Last week, decentralized finance (DeFi) lender Venus Protocol successfully returned assets stolen from a high-profile user, marking a rare recovery in the rapidly evolving crypto security landscape. The funds, originally drained in a phishing exploit, were valued at $11.4 million at today’s token prices, according to the platform.
Rapid Response Prevented Major Losses
On September 2, Eureka Trading CEO Kuan Sun fell victim to a phishing scam while using a fake Zoom client. The malicious transaction granted an attacker approval to drain his Venus holdings, including USDT, USDC, FDUSD, and other tokens, totaling approximately $13 million at the time of the hack.
Venus Protocol emphasized that its platform itself was not exploited. The team paused operations just 20 minutes after the incident to conduct a thorough investigation. Less than 12 hours later, the platform confirmed the issue and executed a recovery strategy, including a community-approved forced liquidation of the attacker’s wallet.
Sun commended Venus for its decisive action, stating on social media:
“Pausing the protocol was one of the hardest calls imaginable … but protecting users came first.
#PeckShieldAlert Correction
— PeckShieldAlert (@PeckShieldAlert) September 2, 2025
The loss for the phished @VenusProtocol user is ~$13.5M.
Initial estimates were higher as we did not exclude the debt position. https://t.co/k6JDDLOrP1 pic.twitter.com/3Wx8ufpvic
Security Firms and Community Coordination Key to Recovery
Venus credited on-chain security experts PeckShield, Hexagate, and Hypernative Labs for assisting in the rapid resolution. The collaboration highlights the growing role of specialized security firms in DeFi incident response.
Despite an initial dip following the hack, Venus’ governance token XVS has rebounded to pre-incident levels, trading at $6.28, up 1.4% in the past day, signaling investor confidence in the protocol’s robust risk management.
Also Read: AAVE Hits $40B TVL, Reclaims $300 as It Dominates DeFi Lending Market
Growing Threat of Phishing in DeFi
Phishing attacks in DeFi continue to rise, with blockchain security firm CertiK reporting $410 million in losses across 132 incidents in the first half of 2025 alone. Venus’ successful recovery is being widely celebrated as an example of how prompt, coordinated action can mitigate the financial and reputational damage of such attacks.
Venus Protocol’s handling of the phishing exploit underscores the importance of rapid incident response, community engagement, and professional security audits in DeFi. As the sector grows, protocols that prioritize user safety are likely to maintain trust and market resilience.
Stay ahead with real-time updates and insights—Join our Telegram channel!
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
