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Velvet Capital Deactivates Website Amid Phishing Attack Concerns
Velvet Capital, a decentralized finance (DeFi) asset management protocol supported by Binance Labs, recently faced a security threat that led to the temporary deactivation of its website. Reports of suspicious activity on the trading platform raised concerns of a potential phishing attack.
Security Measures Taken
Upon detecting abnormal behavior, Velvet Capital initiated internal investigations and promptly advised investors not to authorize wallet connection requests until further notice. Founder Vasily Nikonov took swift action to safeguard investor funds by announcing the temporary closure of the website on Telegram.
Efforts to Address the Issue
Despite the temporary shutdown, efforts were underway to regain control of the platform and address the security breach. Nikonov assured users that smart contracts were not impacted, and funds on Velvet Capital remained secure. Collaboration with security experts aimed to identify and rectify vulnerabilities exploited by hackers.
Industry Insights: Web3 Security Challenges
2024 has seen over $200 million in losses to hacks and rug pulls in the Web3 space. According to a report by Immunefi, incidents of security breaches have increased significantly compared to the previous year. Private key and wallet compromises have contributed to a substantial portion of the total losses, raising concerns about the security of digital assets.
Despite the challenges, ongoing efforts within the industry aim to enhance security measures and protect investor funds from cyber threats.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
