The team at Velvet Capital is advising users to refrain from linking their digital wallets to the protocol’s website due to a potential front-end attack.
Velvet Capital, a decentralized finance (DeFi) protocol functioning as an asset management dashboard, may have been targeted by hackers who exploited vulnerabilities in the website’s front-end. In a recent announcement on Apr. 23, the team disclosed that the protocol’s website was subjected to what appears to be a front-end attack, enabling malicious actors to exploit vulnerabilities and potentially compromise user data or carry out unauthorized actions on the platform.
While details about the attack remain vague, the Velvet team assured users that they have promptly identified the issue and are working with top security researchers to address the malicious activity. They emphasized that the protocol’s smart contracts remain unaffected, highlighting that the issue was limited to the front-end. Users are currently advised to refrain from using the website until further notice.
A spokesperson for Velvet Capital mentioned in a Telegram post that no known users were impacted by the attack. Those affected can create a ticket on the project’s Discord server for assistance. However, analysts at the blockchain analytics firm Scam Sniffer argue that there may be victims, although no specific details have been provided at this time.
Having received backing from Binance Labs in late 2022, Velvet Capital is the latest Binance-supported project to face security breaches. This incident follows a hack on the permissionless money market protocol OpenLeverage, also supported by Binance Labs, earlier in April, resulting in a $236,000 loss allegedly caused by an attack funded through Tornado Cash.
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