- 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 community optimism.
Leading DeFi lending platform Venus Protocol demonstrated its resilience after the team successfully retrieved funds lost in a recent phishing incident that shook its community.
Notably, the lending network suffered a sophisticated phishing attack on September 2, during which a prominent Venus user, Kuan Sun, experienced significant losses.
The Venus Protocol team worked with investigative partners such as PeckShield and managed to recover the funds. The platform posted on X:
We are pleased to share… we have officially returned KuanSun’s positions worth $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 situation and protect the protocol’s reputation.
To ensure the protocol’s safety after confirming the attacker targeted an individual user, Venus paused operations for 20 minutes following the attack to initiate its investigation.
The team explained the pause as follows:
This was done to secure the protocol and all users, and to recover the compromised user’s funds.
A post-incident analysis shows the Venus team completed security checks, verified system integrity, and recovered the stolen assets in under 12 hours.
Transparency throughout the recovery and the rapid response reassured the community about the protocol’s safety and demonstrated effective crisis management.
The network’s native token reflected prevailing optimism with bullish price action.
XVS Price Outlook
The Venus Protocol token has rebounded from the drop caused by the hacking incident.
XVS is trading at $6.31 after gaining more than 2% in the last 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 gains in the near term as its recovery aligns with broader market advances.
Global cryptocurrency market capitalization rose 0.68% over the past day as Bitcoin reclaimed $112,000.
Technical indicators support a bullish trajectory for XVS.
Chaikin Money Flow climbed from negative territory over the weekend to 0.36, indicating renewed inflows into the Venus Protocol ecosystem amid restored investor confidence.
The altcoin trades well above its 50- and 100-period exponential moving averages on 3-hour charts, signaling buyer dominance.
Additionally, a MACD crossover and a green histogram reinforce the bullish outlook.
The daily Relative Strength Index at 51 also suggests potential for an upward trend shift.
Continued upward momentum could clear the psychological $7 barrier and target February highs near $9.
Markets remain volatile, however, as attention turns to the Federal Reserve’s decision at the September 17 meeting.
Venus’s recovery underscores improved security capabilities in the DeFi space and highlights that experts now have more tools and coordination to recover stolen assets.