TL;DR
- Velvet Capital Shutdown: Following a potential phishing threat, Velvet Capital, a DeFi protocol, has temporarily shut down its website to protect users’ security.
- Security Measures & Community Alert: The team issued an urgent alert after suspicious activity was reported, and Vasily Nikonov assured that funds were safe but advised users who transacted after the incident to seek support.
- Proactive Cybersecurity: In collaboration with blockchain investigation firms, Velvet Capital is addressing the hack, highlighting the importance of cybersecurity in the DeFi space and promising a detailed report post-resolution.
Velvet Capital, a DeFi asset management protocol supported by Binance Labs, has taken a strong step to protect its users by temporarily closing its website. This decision was made in light of a possible phishing threat that could put user security at risk.
The incident was first reported by community members on April 23, who noticed suspicious activity prompting them to approve wallet access upon connecting to the protocol’s front end. Velvet Capital’s team quickly issued an urgent security alert, advising users to refrain from connecting their wallets or conducting any transactions until further notice.
Vasily Nikonov, the person behind Velvet Capital, has shared on Telegram that the website will be temporarily closed for maintenance to address an issue. He reassured users that the smart contracts and funds on Velvet are safe. However, he requested anyone who has made transactions after 5:39 am UTC on April 23 to contact Discord support with transaction details for assistance.
Velvet Capital’s Collaborative Efforts with Blockchain Investigation Firms
Blockchain investigation firms Blockaid and Scam Sniffer confirmed the website hack before Velvet Capital’s official announcement. The proactive measures taken by Velvet Capital reflect the growing concerns over cybersecurity in the crypto space. Just a day before the incident, Velvet Capital had released its custom bloXroute Protect RPC, designed to protect users from MEV Frontrunning and Sandwich Attacks.
Velvet Capital’s quick reaction underscores the vital need for staying alert and acting promptly against cyber threats. In the rapidly changing DeFi landscape, platforms such as Velvet Capital are leading the way in reinforcing security protocols to protect their users’ funds.
While the website remains offline for further investigation, Nikonov has committed to providing a detailed post-mortem once the issue is resolved. In the meantime, the community is reminded to stay alert and cautious when interacting with DeFi platforms, as the threat of cyber attacks remains a constant challenge in the digital asset industry.
Currently, there have been no reports of losses from users, and Velvet Capital is putting in a lot of effort to fix the front-end problem and avoid any harm to its users. This event highlights the ongoing importance of strict security measures in the fast-expanding realm of cryptocurrency and blockchain technology.
