- The platform recovered the assets and returned them to the victim.
- The attack occurred on September 2 and swift action restored user confidence.
- XVS rose 2% thanks to community optimism.
Leading DeFi lending platform Venus Protocol demonstrated effective incident response after its team recovered funds lost in a recent phishing attack that shook the community.
Notably, the protocol suffered a sophisticated phishing incident on September 2, which resulted in significant losses for a well-known Venus user, Kuan Sun.
The Venus Protocol team worked with investigative firms such as PeckShield to trace the funds and succeeded. In a post on X, the team stated:
We are pleased to share that we have officially returned KuanSun’s position, 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.
Once it was clear the attacker targeted a specific user rather than the protocol itself, Venus paused operations for 20 minutes after the incident to investigate.
Explaining the pause, the team said:
This was done to ensure the safety of the protocol and all users, and to secure the funds of the affected user.
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 process and rapid response reassured the community about the protocol’s safety and demonstrated capable governance able to handle crises smoothly.
The network’s native token reflected renewed optimism with bullish price action.
Price Outlook for XVS
The Venus Protocol token recovered from the post-attack decline.
XVS traded at $6.31 after gaining 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 gains in the near term as its recovery aligns with a broader market upswing.
Global cryptocurrency market capitalization rose 0.68% over the past day as Bitcoin recaptured $112,000.
Technical indicators support a bullish trajectory for XVS.
The Chaikin Money Flow climbed from negative territory to 0.36 over the weekend, indicating capital inflows into the Venus Protocol ecosystem amid restored investor confidence.
On 3-hour charts, the token trades comfortably above the 50- and 100-period exponential moving averages, signaling buyer dominance.
A MACD crossover and a green histogram further confirm the bullish outlook.
Additionally, the daily Relative Strength Index at 51 suggests room for a trend shift upward.
Continued upward momentum could test the psychological $7 level and then target February highs near $9.
Markets remain sensitive, however, with attention focused on the Federal Reserve’s policy decision scheduled for September 17.
Meanwhile, Venus’s recovery highlights improved security practices in DeFi as teams and forensic partners increasingly demonstrate the ability to trace and retrieve stolen assets.