Velvet Capital Deactivates Website Temporarily Due to Phishing Attempt

Decentralized finance (DeFi) asset management protocol Velvet Capital faced a major phishing attempt, leading to the temporary deactivation of its website. The incident was brought to light by members of the crypto community who noticed unusual activity on the platform on April 23.

Users trying to access Velvet Capital’s trading platform were prompted to approve wallet access, raising suspicions among investors. Following internal investigations, the protocol issued a cybersecurity alert advising users to deny all wallet connect requests until further notice.

To prevent any potential loss of funds, investors who may have approved the fraudulent requests were urged to revoke wallet access to the protocol. Additionally, Velvet Capital took the proactive step of deactivating the website to minimize further risks for its users.

Founder Vasily Nikonov took to Telegram to announce the closure, stating that the team was working on resolving the issue and would provide a post-mortem once the situation was under control. Despite the setback, Nikonov reassured users that the smart contracts were secure and funds on Velvet Capital remained unaffected.

Blockchain investigation firms confirmed the website hack, prompting Velvet Capital to advise users who confirmed transactions since April 23 to reach out for assistance. Nikonov emphasized that no users had reported any losses at the time of the announcement.

As the investigation continues, Velvet Capital remains committed to addressing the issue and ensuring the security of its platform for all users. Stay tuned for further updates on this developing story.