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.
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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.
