Venus Protocol Halts Operations After $27M Phishing Attack
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 12 2026- Hack Loss: Venus Protocol suffered a $27 million loss due to a phishing attack on a major account, leading to an operational pause and ongoing investigations, highlighting security vulnerabilities in DeFi platforms and a crisis of market trust.
- Industry Security Concerns: This incident has raised widespread concerns about DeFi security risks, particularly in 2026, as Balancer also experienced a significant hack, losing between $116 million and $128 million, further unsettling investors.
- Investigation and Response: The Venus Protocol team confirmed the operational pause and is actively investigating the incident; although no immediate statements were made by top leadership, they are working closely with security teams to address the crisis.
- Asset Recovery Possibility: Experts note that this event resembles previous phishing and smart contract exploits, and while security risks persist, historical successful asset recovery cases may provide precedents for future responses.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
