- Due to a possible front-end assault, the Velvet Capital team has advised users not to link their digital wallets to the protocol’s website.
Hackers may have attacked Velvet Capital, a decentralized finance (defi) protocol that functions as an asset management dashboard, by taking advantage of front-end website weaknesses.
The team noted in an X post on April 23 that there appeared to be a front-end attack on the protocol’s website, which gave malicious actors the opportunity to take advantage of weaknesses and perhaps compromise user data or carry out unwanted acts on the network.
Though details regarding the nature of the assault are still unknown, the Velvet team asserts that they quickly spotted the problem, worked with leading security researchers to examine the malicious activities, and that the problem is already being repaired.
Furthermore, the company emphasized to users that the issue was confined to the front end and that the smart contracts within the protocol “are not affected.” As of this writing, users are still urged not to interact with the website.
No known users were impacted, according to a Velvet Capital spokesman who made the announcement in a Telegram message. Those who were affected by the attack can file a ticket on the project’s Discord server. Analysts at the blockchain analytics company Scam Sniffer, on the other hand, contend that there ought to be; but, as of the time of publication, no specifics were provided.
Velvet Capital, which received backing from Binance Labs in late 2022, is the most recent in a line of Binance-backed initiatives to suffer security problems. This event occurs soon after OpenLeverage, a permissionless money market protocol supported by Binance Labs, saw a hacker attack earlier in April that purportedly resulted in a $236,000 loss due to an attack financed by Tornado Cash.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
