Venus Protocol restores services after $27M exploit recovery

Venus Protocol resumes withdrawals after recovering $27M in suspected exploit; XVS dips 2.7%

  • Venus Protocol resumed withdrawals and liquidations after a multi-hour pause on Tuesday.
  • About $27 million was drained in a suspected exploit but has been recovered, the protocol said.
  • The platform paused operations to check its front end and secure user funds.
  • On-chain activity pointed to its Core Pool Comptroller contract moving assets, including vUSDC and vETH, to an attacker’s wallet.
  • The native token XVS fell 2.69% in 24 hours following the incident; a full post-mortem will be released later.

Venus Protocol, a lending platform on BNB Chain, said it fully restored withdrawals and liquidations on Wednesday after suspending them the previous day following a suspected exploit. The pause began on Tuesday while the team investigated unusual activity.

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The protocol confirmed that lost funds had been recovered and that the pause allowed security teams to complete checks to ensure its front end was not compromised. In a post on X, Venus Protocol said operations resumed at 9:58 PM UTC.

On-chain sleuths first flagged suspicious transfers from the platform’s Core Pool Comptroller contract that appeared to route user assets, including vUSDC and vETH, to a Hacker wallet. vUSDC and vETH are tokenized versions of USDC and ETH used on the platform to represent user deposits.

The incident involved a malicious contract update that drained an estimated $27 million. The protocol emphasized the pause was, in part, “necessary not just to secure the phished funds, but to conduct full security checks.

The team said the lost funds have been recovered “under Venus’ protection,” and that it will publish a full post-mortem in due course. The protocol also expressed gratitude to the community for support during a “critical moment” in the same X post (Venus Protocol).

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Following the events, the platform’s native token, XVS, traded lower, down about 2.69% over 24 hours. The protocol continues to monitor systems and prepare its detailed incident report.

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