BINANCE LABS-BACKED VELVET CAPITAL REPELS POTENTIAL PHISHING ATTACK

Last updated: June 19, 2025, 18:32 | Written by: Raoul Pal

The decentralized finance (DeFi) space is constantly evolving, offering innovative ways to manage and grow digital assets. 村上隆、自身の個展「もののけ京都」のトレカをnft対象者に販売However, this innovative landscape also attracts malicious actors seeking to exploit vulnerabilities. Velvet Capital, a decentralized finance (DeFi) asset management protocol backed by Binance Labs, has been forced to temporarily deactivate its website following concerns over a potential phishing attack., Reports of abnormal behavior on Velvet Capital s trading platform surfaced on April 23. Upon attempting to connect to the website, usersRecently, Velvet Capital, a DeFi asset management protocol backed by Binance Labs, faced a potential phishing attack, forcing the platform to temporarily deactivate its website as a precautionary measure.This incident serves as a stark reminder of the ever-present cybersecurity threats in the crypto world and the importance of vigilance. Last updated: Ap EDTThe prompt action taken by Velvet Capital highlights the increasing awareness and responsiveness of DeFi projects to protect their users and infrastructure.This article will delve into the details of the phishing attempt, the steps taken by Velvet Capital to mitigate the threat, and the broader implications for the DeFi ecosystem. Velvet Capital, a decentralized finance (DeFi) asset management protocol backed by Binance Labs, has been forced to temporarily deactivate its website following concerns over a potential phishing attack. Reports of abnormal behavior on Velvet Capital s trading platform surfaced on April 23. Upon attempting to connect to the website, users encountered prompts to authorize wallet access. [ ]We will also discuss best practices for users to safeguard their assets against such attacks, ensuring a safer and more secure experience in the world of decentralized finance.

The Phishing Attack on Velvet Capital: A Timeline of Events

The potential phishing attack targeting Velvet Capital unfolded rapidly, prompting swift action from the platform's team. Decentralized finance (DeFi) asset management protocol, Velvet Capital, backed by Binance Labs, has abruptly deactivated its website due to a potentialHere's a breakdown of the key events:

April 23rd: Reports of abnormal behavior began surfacing on the Velvet Capital trading platform.Users reported encountering suspicious prompts requesting wallet access upon attempting to connect to the website.
Internal Investigation Initiated: Recognizing the potential threat, Velvet Capital immediately launched an internal investigation to assess the extent of the suspicious activity and identify the source of the potential attack.
Cybersecurity Alert Issued: Based on the findings of the initial investigation, Velvet Capital issued a cybersecurity alert, advising all investors to immediately deny any wallet connect requests originating from the application until further notice. Recognizing the potential threat, Velvet Capital swiftly initiated internal investigations and issued a cybersecurity alert advising investors to refrain from Velvet Capital, Backed by Binance Labs, Temporarily Offline Due to Phishing Attack RiskThis proactive measure aimed to prevent users from unknowingly granting malicious actors access to their wallets.
Website Deactivation: To further mitigate the risk and prevent any potential compromise of user funds, Velvet Capital made the decision to temporarily deactivate its website.This action effectively shut down the primary access point for the phishing attack, preventing further potential victims.
Remediation Efforts: Velvet Capital founder, Vasily Nikonov, urged users who had confirmed transactions on the platform since April 23rd at 5:39 am UTC to open a support ticket on Discord and provide detailed transaction information. Velvet Capital, a decentralized finance (DeFi) asset management protocol backed by Binance Labs, has been forced to temporarily deactivate its website following concerns over a potential phishing Velvet Capital, Backed by Binance Labs, Temporarily Offline Due to Phishing Attack RiskThis allowed the team to investigate individual cases and implement necessary remediation measures to protect affected users.

Velvet Capital's Response: Protecting Users and Infrastructure

Velvet Capital's response to the potential phishing attack demonstrates a commitment to user security and proactive risk management. Internal investigations led Velvet Capital to issue a cybersecurity alert, advising investors to deny all wallet connect requests from the application until further notice.The platform's actions went beyond simply shutting down the website; they involved a multi-pronged approach to identify, contain, and remediate the threat.

Immediate Actions and Communication

The speed and clarity of Velvet Capital's communication were crucial in minimizing the potential damage.The immediate cybersecurity alert served as a vital warning, preventing many users from falling victim to the phishing attempt.The decision to deactivate the website, while disruptive, was a necessary step to protect user funds. Binance Labs, the cryptocurrency exchange s venture capital arm, has made its first investment in decentralized science (DeSci) with an investment in BIO Protocol, an accelerator that seeks to transform the financing and commercialization of health sciences. Diversifying the Binance venture portfolio BIO Protocol supports a network of Biotech Decentralized Autonomous Organizations (BioDAOsFurthermore, the founder's direct communication through Discord provided a personal touch and reassurance to the community during a stressful situation.

BloXroute Protect RPC: A Shield Against MEV Attacks

Prior to the phishing attempt, Velvet Capital had introduced its bloXroute Protect RPC to enhance user security.This feature aimed to protect users from MEV (Miner Extractable Value) Frontrunning and Sandwich Attacks.MEV attacks occur when malicious actors exploit pending transactions in the blockchain to profit at the expense of other users. Velvet Capital, a decentralized finance (DeFi) asset management protocol backed by Binance Labs, has been forced to temporarily deactivate its website following concerns over a potential phishing attack.While the bloXroute Protect RPC wasn't directly designed to prevent phishing attacks, its implementation highlights Velvet Capital's ongoing commitment to improving the overall security and user experience on its platform.

What are MEV Frontrunning and Sandwich Attacks?

Frontrunning: A malicious actor observes a pending transaction and places their own transaction with a higher gas fee to be executed before the original transaction, profiting from the price movement caused by the original transaction.
Sandwich Attack: A malicious actor places two transactions, one before and one after a victim's transaction, to manipulate the price of an asset and profit from the slippage caused by the victim's trade.

Smart Contract Security: Ensuring Fund Safety

Nikonov explicitly stated that the smart contracts underlying the Velvet Capital platform were not compromised during the incident.This is a crucial point, as it indicates that user funds held within the platform's smart contracts remained secure.The phishing attack primarily targeted user access through the website interface, rather than directly exploiting vulnerabilities in the smart contract code.

Understanding Phishing Attacks in the DeFi Space

Phishing attacks are a common threat in the cryptocurrency and DeFi space.They typically involve malicious actors creating fake websites or applications that mimic legitimate platforms to trick users into revealing their private keys or connecting their wallets. XRP Price Prediction with Binance Futures Halting XRP as Margin Asset Time to Sell XRP?These attacks can be sophisticated and difficult to detect, making it essential for users to be vigilant and follow best security practices.

Common Phishing Tactics

Fake Websites: Creating websites with domain names that closely resemble legitimate platforms. Velvet Capital, a decentralized finance (DeFi) asset management protocol backed by Binance Labs, has been forced to temporarily deactivate its website following concerns over a potential phishing attack. Reports of abnormal behavior on Velvet Capital s trading platform surfaced on April 23.Often, the only difference is a minor typo or variation.
Spoofed Emails: Sending emails that appear to be from trusted sources, such as exchanges or DeFi protocols, requesting users to click on a link and enter their credentials.
Malicious Browser Extensions: Distributing browser extensions that inject malicious code into websites, allowing attackers to steal user information or manipulate transactions.
Social Engineering: Using social media or other communication channels to trick users into revealing sensitive information or performing actions that compromise their security.

Identifying Phishing Attempts: Red Flags to Watch Out For

Suspicious URLs: Always double-check the URL of a website before entering any information.Look for typos, variations, or unusual domain extensions.
Unsolicited Requests for Wallet Access: Be wary of websites that request wallet access without a clear and legitimate reason. Velvet Capital, a decentralized finance (DeFi) asset management protocol backed by Binance Labs, has been forced to temporarily deactivate its website following concerns over a potential phishing attack. Reports of abnormal behavior on Velvet Capital s trading platform surfaced on April 23. Upon attempting to connect to the website, users encountered prompts to authorize wallet access.Always review the permissions requested before granting access.
Grammatical Errors and Poor Design: Phishing websites often contain grammatical errors, typos, and poor design quality, as attackers may not invest significant time or resources in creating a convincing replica.
Urgent or Threatening Language: Phishing emails or messages often use urgent or threatening language to pressure users into taking immediate action without thinking critically.
Requests for Private Keys: Legitimate platforms will never ask for your private keys.Anyone requesting your private keys is almost certainly a scammer.

Protecting Yourself from Phishing Attacks: Best Practices for DeFi Users

While DeFi platforms are working to enhance their security measures, individual users also play a crucial role in protecting themselves from phishing attacks. Binance Labs, the cryptocurrency exchange s venture capital arm, has made its first investment in decentralized science (DeSci) with an investment in BIO Protocol, an accelerator that seeks toBy following these best practices, you can significantly reduce your risk of falling victim to these scams:

Use a Hardware Wallet: Hardware wallets provide an extra layer of security by storing your private keys offline, making them inaccessible to attackers even if your computer is compromised.
Verify Website URLs: Always double-check the URL of any website before connecting your wallet or entering any sensitive information. Internal investigations led Velvet Capital to issue a cybersecurity alert, advising investors to deny all wallet connect requests from the application until further notice. Velvet CapitalBookmark frequently used websites to avoid falling victim to typosquatting attacks.
Be Cautious of Wallet Connect Requests: Carefully review the permissions requested by any website before granting wallet access.Only grant access to trusted websites and limit the permissions granted whenever possible.
Use Strong, Unique Passwords: Use strong, unique passwords for all your online accounts, including your email and cryptocurrency exchange accounts.Consider using a password manager to securely store and manage your passwords.
Enable Two-Factor Authentication (2FA): Enable 2FA on all your accounts that support it. 2FA adds an extra layer of security by requiring a second verification code in addition to your password.
Stay Informed About Common Scams: Stay up-to-date on the latest phishing tactics and scams targeting cryptocurrency users.Be aware of the red flags and warning signs to watch out for.
Never Share Your Private Keys: Never share your private keys with anyone, under any circumstances. Related: Binance Labs-backed Velvet Capital repels potential phishing attack BioDAOs already busy BIO Protocol has a network of eight BioDAOs, which reached a market cap of $200 million inYour private keys are the keys to your cryptocurrency holdings, and anyone who has access to them can steal your funds.
Use a VPN: A Virtual Private Network (VPN) can encrypt your internet traffic and mask your IP address, making it more difficult for attackers to track your online activity and target you with phishing attacks.
Regularly Review and Revoke Wallet Permissions: Regularly review the permissions granted to different websites and applications and revoke access to any that you no longer use or trust.

Binance Labs' Investment in BIO Protocol: Diversifying the Venture Portfolio

While the Velvet Capital incident highlights the security challenges in the DeFi space, Binance Labs continues to invest in innovative projects that are shaping the future of blockchain technology. Binance Labs-backed Velvet Capital repels potential phishing attack. Diakses tanggal . Crypto News. Velvet Capital, Backed by Binance Labs, Temporarily Offline Due to Phishing Attack Risk. Diakses tanggal . Featured Image: CointelegraphRecently, Binance Labs made its first investment in decentralized science (DeSci) with an investment in BIO Protocol, an accelerator focused on transforming the financing and commercialization of health sciences. Velvet Capital, a blockchain-based investment firm backed by Binance Labs, has announced that it is temporarily offline due to the risk of a potential phishing attack. As a precautionary measureThis investment demonstrates Binance Labs' commitment to diversifying its venture portfolio and supporting projects that are pushing the boundaries of blockchain technology beyond traditional finance.

What is Decentralized Science (DeSci)?

Decentralized Science (DeSci) is a movement that aims to use blockchain technology to address challenges in the traditional scientific research and development process, such as:

Funding: Decentralizing funding mechanisms to reduce reliance on traditional grant funding and increase transparency.
Data Sharing: Creating open and accessible platforms for sharing research data and promoting collaboration.
Intellectual Property: Exploring new models for intellectual property ownership and commercialization that are more equitable and accessible.
Reproducibility: Improving the reproducibility of scientific research by using blockchain to track data provenance and ensure data integrity.

BIO Protocol supports a network of Biotech Decentralized Autonomous Organizations (BioDAOs) that are working to advance various aspects of decentralized science. Velvet Capital, a decentralized finance (DeFi) asset management protocol backed by Binance Labs, has been forced to temporarily deactivate its website following concerns over a potential phishing attack. Reports of abnormal behavior on Velvet Capital s trading platform surfaced on April 23. Upon attempting to connect to the website, users encountered prompts to authorize wallet accessThis investment reflects Binance Labs' belief in the potential of blockchain technology to transform various industries beyond finance, including healthcare and scientific research.

The Future of Security in DeFi: A Collaborative Approach

The Velvet Capital incident underscores the need for a collaborative approach to security in the DeFi space. Velvet Capital introduced its bloXroute Protect RPC to counter the attack, aiming to protect users from MEV Frontrunning and Sandwich Attacks. However, shortly after its announcement, the protocol s website faced suspicious activity, raising concerns about user funds.DeFi platforms, security auditors, and individual users must work together to identify and mitigate potential threats.This includes ongoing security audits, bug bounty programs, and user education initiatives.Furthermore, the development of more robust security tools and infrastructure is essential to protect the growing DeFi ecosystem.

Key Areas for Improvement

Smart Contract Audits: Rigorous and comprehensive smart contract audits are crucial for identifying potential vulnerabilities before deployment.
Bug Bounty Programs: Offering rewards to ethical hackers who identify and report vulnerabilities can help to proactively address security weaknesses.
User Education: Providing users with the knowledge and resources they need to protect themselves from scams and phishing attacks is essential.
Formal Verification: Using formal verification techniques to mathematically prove the correctness of smart contract code can help to prevent bugs and vulnerabilities.
Decentralized Security Solutions: Developing decentralized security solutions, such as decentralized firewalls and intrusion detection systems, can help to protect DeFi platforms from attacks.

Conclusion: Vigilance and Proactive Measures are Key

The potential phishing attack on Binance Labs-backed Velvet Capital serves as a valuable lesson for the entire DeFi community. Velvet.Capital is an intent-based DeFi Operating System that helps launch manage on-chain funds structured products. New. Resources. Advanced Search. Start FreeIt highlights the importance of vigilance, proactive security measures, and rapid response in the face of potential threats.While Velvet Capital's quick action successfully repelled the attack, the incident underscores the constant need for DeFi platforms and users alike to remain vigilant and adopt best practices to protect their assets. Velvet Capital, a decentralized finance (DeFi) platform backed by Binance Labs, urged users to exercise caution after detecting a potential phishing attack targeting its website.By staying informed, implementing robust security measures, and working together, we can build a safer and more secure DeFi ecosystem for everyone.Remember to always double-check website URLs, be cautious of wallet connect requests, and never share your private keys with anyone.The safety of your digital assets depends on it.Let this incident be a reminder to prioritize security and approach the DeFi world with informed caution.