Decentralized finance (DeFi) asset management protocol, Velvet Capital, took the proactive step of temporarily disabling its website in order to prevent a potential phishing attack. On April 23, members of the crypto community noticed unusual activity on Velvet Capital’s trading platform. Some users attempting to access the front-end were prompted to grant access to their wallets for the protocol. Following internal investigations, Velvet Capital issued a cybersecurity alert, advising investors to decline all wallet connect requests from the application until further notice. This precautionary measure was taken to minimize any further losses for investors. Velvet Capital’s founder, Vasily Nikonov, announced the closure of the website on Telegram, instructing affected users to open a ticket on Discord and share their transaction details with the Velvet Capital team for assistance. After a thorough investigation and implementation of additional security measures, the website was reopened without any reports of funds being lost. The incident was confirmed by blockchain investigation firms Blockaid and Scam Sniffer before Velvet Capital made its official announcement.
Velvet Capital, supported by Binance Labs, successfully fends off attempted phishing attack
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