- The platform recovered the assets and returned them to the victim.
- The attack occurred on September 2, and swift action restored user confidence.
- XVS gained 2% amid renewed community optimism.
Venus Protocol, a leading DeFi lending platform, demonstrated effective crisis management after its team recovered funds lost to a phishing scheme that recently alarmed its community.
On September 2, the lending network experienced a sophisticated phishing incident that resulted in significant losses for a prominent Venus user, Kuan Sun.
Venus Protocol worked with investigative firms such as PeckShield to coordinate the recovery and successfully reclaimed the stolen assets. A post on X (formerly Twitter) stated:
We are pleased to share that… we have officially returned KuanSun’s position valued at $11.4 million at today’s token prices.
After conducting diligence checks, we are happy to share that as of Sep-06-2025 01:33:10 PM UTC, we have officially returned @KuanSun1990’s positions worth $11.4M at today’s token prices.
Transaction tx linked below.
— Venus Protocol (@VenusProtocol) September 8, 2025
The Venus team acted quickly to contain the incident and preserve the ecosystem’s integrity. After confirming the attack targeted a single user rather than the protocol itself, Venus temporarily paused operations for 20 minutes to support investigations.
This pause was implemented to ensure the protocol and all users were safe and to protect the compromised user’s funds.
A post-incident analysis shows that Venus completed security checks, verified system integrity, and recovered the stolen assets in under 12 hours.
Transparent communication throughout the recovery, combined with rapid, decisive action, reassured the community and highlighted governance capable of managing crises efficiently.
The network’s native token reflected the improved sentiment with a positive price response.
XVS Price Outlook
The Venus Protocol token has begun to recover after the post-attack slump.
XVS is trading around $6.31 after rising more than 2% in the past 24 hours.
A 40% increase in 24-hour trading volume signals renewed confidence in the $100 million DeFi lending network.
The altcoin could extend its short-term gains as its recovery aligns with broader market advances.
Global cryptocurrency market capitalization rose 0.68% in the last day, while Bitcoin recovered toward $112,000.
Technical indicators support XVS’s bullish trajectory. The Chaikin Money Flow climbed from negative territory over the weekend to 0.36 at the time of reporting, indicating capital inflows into the Venus ecosystem amid renewed investor confidence.
XVS is trading well above the 50- and 100-period exponential moving averages on the 3-hour charts, signaling buyer dominance. A bullish MACD crossover and a green histogram further confirm upward momentum.
Additionally, the daily Relative Strength Index (RSI) near 51 suggests the potential for a trend shift higher.
Ongoing bullish trends could push XVS toward the psychological $7 level before testing February highs near $9. However, markets remain volatile as attention focuses on the Federal Reserve decision at the September 17 meeting.
Ultimately, Venus Protocol’s successful recovery emphasizes improving security within DeFi, demonstrating that experts and platform teams can now coordinate to retrieve stolen assets and restore user trust.