On April 23, members of the cryptocurrency community on X reported suspicious activity on Velvet Capital’s trading platform, prompting prompt action from the decentralized finance (DeFi) asset management protocol. In an effort to mitigate a significant phishing attempt, Velvet Capital temporarily shut down its website. Users who tried to link their wallets to the platform were asked to confirm access, which was identified as part of the phishing scheme.
Immediate Response and Precautions
Following the detection of the phishing attempt, Velvet Capital issued a cybersecurity alert and advised its investors to decline all wallet connection requests from the platform until further notice. The company also disabled access to the application to prevent any potential losses for investors who might have granted access through the phishing scam.
Vasily Nikonov, the founder of Velvet Capital, communicated through Telegram advising users to avoid interacting with the website during the maintenance and investigative period. Velvet Capital aimed to fully understand and rectify the issue before restoring normal operations.
Detailed Investigation and User Support
Blockchain research firms such as Blockaid and Scam Sniffer confirmed that the hack occurred before the official breach announcement, putting early morning users at risk. Nikonov urged affected users to report their transactions via Discord for individual resolution and reassured that the protocol’s smart contracts were secure.
Points to Take into Account
- Reject unexpected wallet connection requests and verify through official channels.
- Monitor and report any suspicious activity immediately.
- Stay updated with official announcements during cybersecurity incidents.
By swiftly addressing the phishing attack and communicating transparently, Velvet Capital managed to prevent any reported losses. This incident serves as a critical reminder of the importance of cybersecurity vigilance in the DeFi space. Users are encouraged to stay informed and cautious when managing digital assets.
