Binance Labs-Backed Velvet Capital Fends Off Cyber Scammers With Style

Vasily Nikonov, founder of Velvet Capital, noted that users who confirmed any transactions on the platform after April 23 at 5:39 am UTC may have fallen victim to a website hack.

The decentralized finance (DeFi) asset management protocol, Velvet Capital, had to temporarily disable its website to avert a significant phishing attack.

On April 23, members of the crypto community on X reported suspicious activity on Velvet Capital’s trading platform. Users attempting to connect to the front-end were prompted to grant wallet access to the protocol.

After conducting internal investigations, Velvet Capital issued a cybersecurity warning, advising investors to reject all wallet connection requests from the application until further notice.

Investors who may have granted unauthorized access are urged to revoke wallet permissions to prevent financial losses. Additionally, Velvet Capital has disabled its application to reduce further risks to investors.

Velvet Capital founder Vasily Nikonov announced the website closure on Telegram.

Almost two hours after the website was taken offline, Nikonov stated that he was collaborating with the tech team and security experts to regain control of the site from hackers.

Before Velvet Capital officially announced the breach, blockchain investigation firms Blockaid and Scam Sniffer had already confirmed the website hack. Users who completed any transactions on Velvet Capital after April 23 at 5:39 am UTC could be victims of this cybercrime.

Nikonov recommended that affected users open a ticket on Discord and provide transaction details to the Velvet Capital team for further investigation and remediation. He also mentioned:

Nikonov noted that as of 6:50 am UTC, no users had reported any losses.

DeFi protocols Aerodrome and Velodrome experienced similar front-end hacks on November 28, 2023. Both platforms issued statements on X indicating their front ends had been compromised and advised users to refrain from interacting with the platforms while investigations continued.

Blockchain investigator ZachXBT reported that the attackers made off with approximately $40,000 worth of cryptocurrency at the time of the attacks.

READ MORE NEWS ON

Bitcoin | Inflation Deflation Deflation Inflation Cryptocurrencies

* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.