Venus Protocol Resumes After $13.5M Crypto Theft Scare

Key Highlights Venus Protocol halts, then restores operations after $13.5M theft scare Stolen funds secured; no user assets or frontend were compromised XVS token showed only slight gains despite recovery confirmation Venus Protocol Restores Operations After $13.5M Theft Scare Venus Protocol, a decentralized lending platform on BNB Chain, has resumed normal operations after halting services due to a phishing-related ￰0￱ and Security Measures On September 2, Venus announced that withdrawals and liquidations were restored at 9:58 PM ￰1￱ stolen funds were secured under the platform’s control, while all user assets and the frontend remained ￰2￱ team defended its decision to pause activity, explaining that it was “necessary both to recover the stolen funds and to conduct a comprehensive security audit.” The issue stemmed from a phishing attack on a major trader, who unknowingly signed a malicious contract using the updateDelegate() ￰3￱ to blockchain security firm PeckShield, this enabled the attacker to siphon around $13.5 ￰4￱ reports put the potential loss at $27 million, but this was later ￰5￱ Reaction and Next Steps Despite the platform’s recovery and reassurance, the market response was subdued.

XVS, Venus Protocol’s native token, ticked up just 4.6% and traded at $6.29 at press ￰6￱ stressed that the outage gave security experts the chance to verify there was no deeper ￰7￱ developers also expressed gratitude to users: “We’re thankful for the community’s support during this critical moment.” The project has promised to release a full incident report detailing the recovery process and security findings in the near future.