Trader Loses $13.5M in Venus Protocol Phishing Attack
On Sept. 2, a DeFi trader lost $13.5M in a Venus Protocol phishing attack. Blockchain security firm PeckShield initially estimated the loss at $27M but later adjusted for the trader’s outstanding debt. By approving a malicious transaction, the victim allowed attackers to drain stablecoins and wrapped assets (vUSDT and vUSDC) from their wallet. In response, Venus Protocol paused its smart contracts for a security audit, confirmed no protocol vulnerabilities, and blamed the breach on user error. This Venus Protocol phishing attack follows other early-September crypto thefts, including a WLFI token exploit and a $2.3M Bunni DEX hack. With August losses totalling over $163M, rising crypto prices are fueling more aggressive phishing scams. Traders should strengthen wallet security and monitor protocol audits to mitigate phishing risks.
Neutral
We classify the impact as neutral because the hack resulted from user error rather than protocol flaws, preserving confidence in Venus Protocol’s smart contracts. While the phishing attack underscores security risks and may undermine short-term sentiment, it is unlikely to affect the value of stablecoins or Venus tokens significantly. Traders may remain cautious but the long-term fundamentals of the protocol remain intact.