Share this article
Venus Protocol Restores Services, Recovers Stolen Funds After $27M Exploit
The DeFi lender paused withdrawals and liquidations after a malicious contract update drained tens of millions.
Sep 3, 2025, 9:31 a.m.
Make us preferred on Google
What to know:
- Venus Protocol resumed operations after recovering $27 million was siphoned away via a malicious contract update.
- The pause allowed security teams to verify that user funds and the platform’s front end were uncompromised.
- Native token XVS remains down 2.69% over the past 24 hours despite assurances of fund safety.
Venus Protocol, a major lending platform on BNB Chain, said it fully restored operations after suspending withdrawals and liquidations in response to a suspected exploit on Tuesday.
The protocol confirmed on Wednesday that lost funds had been recovered and that the pause allowed security teams to complete full checks to ensure its front end was not compromised.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The incident, which stemmed from a malicious contract update that drained an estimated $27 million, prompted Venus to halt key functions while investigating.
Update: Venus Protocol has been fully restored (withdrawals and liquidations resumed) as of 9:58PM UTC. ✅
— Venus Protocol (@VenusProtocol) September 2, 2025
The lost funds have been recovered under Venus' protection. ✅ https://t.co/y2uUwPqmtb
On-chain sleuths had initially flagged suspicious movements from the platform’s Core Pool Comptroller contract, which seemed to route user assets including vUSDC and vETH to the hacker's wallet.
Despite the platform’s reassurance that funds are safe, Venus’ native token, XVS, remains down 2.69% over the past 24 hours, following a sell-off on Tuesday.
Venus said it will release a full post-mortem of the incident in due course while expressing its gratitude to the community for support during a "critical moment" on X.
It emphasized that the pause was “necessary not just to secure the phished funds, but to conduct full security checks.”
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
How the ultra-wealthy are using bitcoin to fund their yacht upgrades and Cannes trips
Cometh founder Jerome de Tychey is applying DeFi lending and borrowing on platforms like Aave, Morpho, and Uniswap to structures that help the ultra-wealthy secure loans against their massive crypto fortunes.
What to know:
- Wealthy investors who hold much of their fortune in crypto are increasingly turning to decentralized finance platforms to secure flexible credit lines without selling their digital assets.
- Firms like Cometh help family offices and other rich clients navigate complex DeFi tools, using assets such as bitcoin, ether and stablecoins to replicate traditional Lombard-style collateralized loans.
- DeFi loans can be faster and more anonymous than traditional bank credit but carry volatility and liquidation risks, and Cometh is also experimenting with applying DeFi strategies to traditional securities via ISIN-based tokenization.
Top Stories
