Venus Protocol Recovers $11.4M Stolen in Phishing Attack

- $11.4 million in stolen cryptocurrency returned to victim Kuan Sun. - Recovery efforts included halting operations, security audits, and liquidating attacker funds. On September 8, 2025, CoinDesk reported that Venus Protocol recovered and returned $11.4 million in cryptocurrency. According to Coincu and Cointurk News on the same day, the funds were stolen from victim Kuan Sun after attackers used a counterfeit Zoom client to gain unauthorized access to the account and siphon the funds. In response, Venus Protocol swiftly implemented countermeasures to safeguard its platform and restore the stolen assets. In response to the breach, Venus Protocol temporarily suspended all operations to prevent further damage while launching an in-depth investigation. The team also conducted security audits to reinforce the platform's defenses. With community support, the protocol enacted a forced liquidation of the attacker’s wallet, which enabled the recovery process. The broader crypto community commended the decision to return the funds to Kuan Sun, calling it a decisive response to the attack. This event underscores the escalating threat of phishing scams within the decentralized finance (DeFi) ecosystem. Industry reports show that phishing-related losses reached $410 million in the first half of 2025 alone, a figure that emphasizes the urgent need for stronger security practices. Despite this temporary disruption, Venus Protocol demonstrated resilience, as its native token, XVS, rebounded to pre-incident levels.