Venus Protocol Clinches Victory in Asset Recovery

In a recent development, the DeFi platform Venus Protocol successfully reclaimed assets stolen during a phishing attack. The platform returned $11.4 million worth of assets to their owner, Kuan Sun, who is also Eureka Trading’s CEO. During the same period, another protocol, Nemo, was compromised by hackers, resulting in a $2.4 million theft of stablecoins.

How Did Venus Protocol Recover the Stolen Assets?

Venus Protocol took swift action following the security breach on September 2, after Kuan Sun inadvertently signed a malicious transaction via a counterfeit Zoom client. The platform was not directly attacked but responded by activating a transaction freeze within 20 minutes. This proactive measure allowed them to initiate an inquiry immediately.

With a coordinated effort led by security experts from PeckShield, Hexagate, and Hypernative Labs, Venus Protocol managed to recover the stolen funds less than 12 hours post-incident. The recovery involved a forced liquidation of the attacker’s wallet, an action backed by the protocol’s community consensus.

Active on networks such as BNB Chain and Ethereum since 2020, Venus Protocol allows users to deposit collateral and borrow funds. Even though the native XVS token experienced a dip initially, it soon regained its strength, reaching $6.28 according to CoinMarketCap.

What Happened with Nemo Protocol?

Nemo Protocol, operating on the Sui network, found itself in a precarious situation as hackers stole $2.4 million in stablecoins. Security firm PeckShield noted that the assets were transferred from Arbitrum to Ethereum, highlighting the hackers’ swiftness.

On September 8, Nemo Protocol verified the security breach to their users and temporarily halted all smart contract activities. Despite the theft from the market pool, the vault assets were untouched. However, the technical specifics behind the breach have not been publicly disclosed.

Nemo Protocol continues to function within DeFi, offering yield infrastructure and opportunities for tokenization, trading, and yield leverage. An extensive probe into the attack is being conducted to enhance its security frameworks.

Key Takeaways:

• Venus Protocol’s quick response resulted in the successful recovery of $11.4 million.
• Nemo Protocol suffered a loss of $2.4 million, raising concerns about security measures.
• Collaborative efforts with security firms played a crucial role in asset retrieval.
• Both incidents underline the vulnerabilities within DeFi platforms, necessitating improved security infrastructure.

The fast action by Venus Protocol highlights the potential for recovery in digital asset heists. Meanwhile, the attack on Nemo Protocol serves as a reminder of the evolving challenges in securing decentralized financial ecosystems.