DeFi protocol Velvet Capital experienced unusual activity and was forced to temporarily shut down its website

Golden Finance reported that Velvet Capital, a DeFi asset management protocol backed by Binance Labs, experienced abnormal activity and was forced to temporarily shut down its website to prevent major phishing attempts. Community members reported unusual activity on the VelvetCapital trading platform on April 23, where users trying to connect to the frontend were prompted to approve their wallets to access the protocol. An internal investigation led Velvet Capital to issue a cybersecurity alert advising investors to deny all wallet connection requests from the app until further notice. According to blockchain investigator ZachXBT, the attackers managed to steal approximately $40,000 worth of crypto assets at the time.