- The platform recovered the assets and returned them to the victim.
- The attack occurred on September 2, and swift action helped restore user confidence.
- XVS rose about 2% amid renewed optimism in the community.
A leading DeFi lending protocol, Venus Protocol, has proven its resilience after recovering funds lost in a phishing attack that unsettled the community in early September.
The platform was hit by a sophisticated phishing incident on September 2 that resulted in significant losses for a prominent user, Kuan Sun.
Venus Protocol’s team collaborated with blockchain security firms, including PeckShield, to track and retrieve the stolen funds. In an official post, the team confirmed the recovery:
We are happy to share that… we have officially returned KuanSun’s position worth $11.4M 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
Venus acted quickly to contain the incident and protect the broader ecosystem. After confirming the protocol itself was not compromised and that the attacker targeted a single user, the team temporarily suspended operations for approximately 20 minutes to begin an immediate investigation and secure assets.
This was done to ensure that the protocol and all users were safe, and to secure the funds of the compromised user.
According to the post-incident analysis, the team completed security checks, verified system integrity, and recovered the stolen assets in under 12 hours. The transparency during this process and the speed of response reassured users about Venus Protocol’s operational security and governance capabilities.
The network’s native token has reflected the renewed confidence with a modest rebound.
XVS price outlook
XVS has recovered from the immediate post-attack dip. The token traded around $6.31 following a more than 2% gain in the past 24 hours.
Trading volume rose about 40% over the day, signaling renewed interest in the roughly $100 million DeFi lending protocol. The recovery in XVS appears to be supported by broader market strength as well as the successful asset retrieval.
Globally, the cryptocurrency market cap moved higher by 0.68% in the past 24 hours while Bitcoin reclaimed a higher price level, contributing to positive market sentiment.
Technical indicators back a cautious bullish case for XVS. The Chaikin Money Flow moved from negative territory to roughly 0.36, indicating capital inflows into the Venus ecosystem. On the 3-hour chart, the token is trading above the 50- and 100-period exponential moving averages, which suggests buyer control in the short term. A recent MACD crossover and a green histogram further support upside momentum, while the daily Relative Strength Index sits near 51, implying room for a potential trend continuation upward.
If bullish momentum persists, XVS could test the psychological $7 level and potentially challenge February highs near $9. However, market conditions remain volatile as traders monitor macro developments, including the Federal Reserve’s policy decision scheduled for September 17.
Overall, Venus Protocol’s rapid response and successful recovery highlight improving capabilities within the DeFi security ecosystem. The incident demonstrates that, with coordinated effort and forensic tools, teams can trace and recover stolen assets, helping to restore user trust after targeted attacks.