Discord

<a href="https://cointelegraph.com/learn/defi-a-comprehensive-guide-to-decentralized-finance">Decentralized finance (DeFi)</a> asset management protocol Velvet Capital deactivated its website temporarily to prevent a phishing attempt.&nbsp;
Crypto community members on X reported unusual activity on Velvet Capital’s trading platform on April 23. Some users trying to connect to the front-end were prompted to approve their wallet access to the protocol. 
Internal investigations led Velvet Capital to issue a cybersecurity alert, advising investors to deny all wallet connect requests from the application until further notice.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-04/38533f46-187c-4f44-9a04-0e325b8a1503.png" alt="" title="">
 <figcaption style="text-align: center;">
 Velvet Capital issues alert against a possible website compromise. Source:&nbsp;<a href="https://t.me/velvetcapital/41212" target="_blank" rel="noopener nofollow">Velvet Capital</a>
 </figcaption>
</figure>
&nbsp;Velvet Capital deactivated the application to minimize any further losses for investors.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-04/09d77ee5-fb9e-48aa-a998-5045677ad36a.png" alt="" title="">
 <figcaption style="text-align: center;">
 Velvet Capital takes down comprimized website for further investigation. Source:&nbsp;v2.velvet.capital
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</figure>
Velvet Capital founder Vasily Nikonov <a href="https://t.me/velvetcapital/41220" target="_blank" rel="noopener nofollow">announced</a> the website closure on Telegram:
<blockquote data-ct-non-breakable="true">
 “ATTN, don’t interact with the Velvet website, we’re closing it for maintenance and investigating the issue, we will issue a post-mortem once the issue is solved.”
</blockquote>
Nikonov advised any affected users to open a ticket on Discord and share the transaction details with the Velvet Capital team for remediation. He added:
<blockquote data-ct-non-breakable="true">
 “Rest assured that the smart contracts are not impacted and funds on Velvet are not affected, we’re investigating the front-end issue that some of the users faced this morning and will share the results asap.”
</blockquote>
Nikonov told Cointelegraph that after investigating the issue and adding precautionary security measures, the site was re-opened, and that no users reported any loss of funds.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-04/0207516c-3813-4d22-81d9-47b9b9704c9e.png" alt="" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://twitter.com/Velvet_Capital/status/1782634864392429704" target="_blank" rel="noopener nofollow">Velvet Capital</a>
 </figcaption>
</figure>
Blockchain investigation firms Blockaid and Scam Sniffer had confirmed the incident before Velvet Capital’s official announcement.&nbsp;
Magazine: <a href="https://cointelegraph.com/magazine/north-korean-hackers-private-keys-flash-loan-attacks/">Lazarus Group’s favorite exploit revealed — Crypto hacks analysis</a>

Binance Labs-backed Velvet Capital repels potential phishing attack

Cointelegraph

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