Key Insights:
A Venus Protocol user has been a victim of a phishing scam, which drained $27 million in crypto.
The DeFi protocol paused operations for security review.
Losses caused by crypto hacks and scams surpass the previous year’s figures.
PeckShield, one of the leading blockchain security and analytics firms, has reported that a Venus Protocol user fell victim to a phishing scam. The official Venus Protocol X handle has acknowledged that it appears to be the case.
The decentralized lending market has assured that it is currently investigating the issues. When writing, the protocol was paused to conduct security reviews.
Crypto phishing scams are one of the common types of crypto scams. They have caused losses of over $1 billion in 2024 alone. The latest one paused the Venus Protocol, but the platform claimed the loss was not due to a contract flaw.
Venus Protocol User Loses $27 Million
The renowned decentralized money market on Binance Chain (BSC), Venus, has been in the news for a worrying situation. It claims to deliver top-notch functionality for crypto money markets. Still, one of its users fell victim to a phishing scam.
In an X Post, PeckShield stated that one of the Venus Protocol users fell for a phishing scam. The victim has been drained of $27 million in cryptocurrency, which is a big amount.
The decentralized lending platform approved a malicious transaction. It granted token approval for the asset transfer to the scammer’s address (0x7fd8…202a).
This incident grabbed the crypto community’s attention and drew mixed reviews from crypto users. Most reactions stated that it was a mistake from the platform user’s side. They emphasized how important it is to be wary of modern crypto scammers.
Venus Protocol Pauses Operations
After learning about the suspicious transaction, Venus Protocol quickly acted and informed users about investigating the incident. It paused operations while conducting security reviews.
The decentralized finance platform has made a series of posts on X. It clarified that the attacker has exploited the user, not the protocol. It acknowledged that a user’s wallet got drained. Therefore, it paused operations for investigation.
The decentralized lending market added that its Smart Contract is safe. Venus later updated us that it was directly in contact with the phishing scam victim. It further confirmed pausing operations while trying to recover the user’s funds.
Venus Protocol also showed commitment to protect its users from crypto scams. It claimed that the hacker would get the unsuspecting victim’s funds if the protocol resumed.
There are no more updates from the platform. Security experts at the community-driven DeFi protocol are trying to prevent phishing scam losses. It could draw immense praise from the crypto community if they succeed.
Crypto Scams and Hacks Caused $2.5 Billion in First Half of 2025
The phishing scam on the Venus Protocol user is not the first incident in 2025 that gained attention. The Hack3d Report reveals that over $2.7 billion has been stolen by crypto scammers and hackers. That figure surpasses 2024’s $2.42 billion in losses!
The ByBit incident and the Cetus Protocol exploit were two major attacks in which platforms lost worth $1.78 billion. Wallet compromise remained the major cause of loss, causing $1.7 billion in losses, whereas phishing attacks drained $410 million.
The exploit of the Venus Protocol user can increase losses due to crypto phishing attacks in 2025. The crypto community eagerly awaits more DeFi protocol updates and hopes they might prevent the loss.
