Velvet Capital, Backed by Binance Labs, Temporarily Offline Due to Phishing Attack Risk
Velvet Capital, a decentralized finance (DeFi) asset management protocol backed by Binance Labs, has been forced to temporarily deactivate its website following concerns over a potential phishing attack.
Reports of abnormal behavior on Velvet Capital’s trading platform surfaced on April 23. Upon attempting to connect to the website, users encountered prompts to authorize wallet access.
Recognizing the potential threat, Velvet Capital swiftly initiated internal investigations and issued a cybersecurity alert advising investors to refrain from approving wallet connection requests until further notice.
Founder Vasily Nikonov took decisive action to safeguard investor funds, announcing the temporary closure of the Velvet Capital website on Telegram .
“ATTN, don’t interact with the Velvet website; we’re closing it for maintenance and investigating the issue, We will issue a post-mortem once the issue is solved.”
Concerned about the security of user assets, Nikonov urged investors to interact with the platform only after maintenance and security measures had been completed. The move aimed to minimize potential user losses and prevent cybercriminals from accessing investor funds.
Almost two hours after the website was offline, Nikonov reassured users that efforts were underway to regain control of the platform and address the security breach.
ATTN: Some of the users experienced an issue while connecting to the app today, please don't interact with Velvet front-end, we're closing it for maintenance & investigating the issue.
We will share a post-mortem once the issue is solved.
— Velvet.Capital (@Velvet_Capital) April 23, 2024
He emphasized collaboration with technical experts and security researchers to identify and
Read more on cryptonews.com
