Venus Protocol Halts Operations After $13.5 Million Phishing Attack

A significant loss of funds, estimated around $13.5 million, occurred following a sophisticated phishing attack targeting a major Venus Protocol whale on September 1st. The attacker exploited a vulnerability in the wallet extension of the victim’s hardware wallet setup to gain control over their assets. The protocol reacted swiftly by pausing operations to prevent further loss and protect remaining funds. This incident highlights vulnerabilities in wallet extension security, even when using secure hardware wallets.