Venus Protocol recovers 11 million times during a record time

The recent $11.4 million recovery from Venus Protocol’s recent phishing attacks was the first to emit 13.5 million people from Kuan Sun’s account, a standout moment for Defi Security. I recovered completely in just 12 hours. It shows how emergency governance works effectively in high-stakes situations. In spaces where hacks can take months to repair, this is unusually quick, indicating that well-designed distributed governance can outperform traditional financial systems when properly tuned.

Phishing attacks against Kuan Sun highlight security risks

The attack itself was an example of a textbook of modern phishing sophistication. Kuan Sun, founder of Eurekatrading, received what appeared to be a legal Zoom invitation. It was actually a trap set up by the Lazaro Group, a hacking entity supported by the North Korean province. They targeted social engineering to combine fake Zoom clients, malicious code disguised as microphone updates, and gain delegated controls on Sun’s Venus Protocol account. Once inside, the attackers emitted assets such as VUSDT, VUSDC, and BTCB, and utilized both human error and system permissions. It emphasizes that even experienced users are vulnerable when attackers carefully create their approach.

Emergency governance enables rapid asset recovery

Venus Protocol responses highlight the power of coordinated real-time governance. Security partners flagged suspicious activity within minutes. The platform paused operations to prevent further asset movement without confusing other users. The community then ran an emergency governance vote, effectively liquidating the attacker’s wallet in one transaction. This approach has fully recovered stolen funds, restored system integrity, and reassured stakeholders. The XVS Governance Stoken initially fell 10% after news of the attack, and quickly rebounded, reflecting new confidence in the platform’s crisis management capabilities.

September 2025 will see the threat landscape of Defi worsen

This incident is also part of a worrying broader trend. In September 2025 alone, $25.4 million was stolen in six defi incidents. Currently, phishing attacks account for 56.5% of all debt violations this year. Cross-chain bridges allow users to move assets across different networks. This is very convenient. At the same time, they raise a large amount of money in one place. This makes them the main target for hackers. Attackers take advantage of the complexity of the system and move stolen assets across multiple blockchains to avoid detection. Recent incidents show how hackers use both technical flaws and social tricks. Nemo Protocol lost 2.4 million and Credix Finance lost 4.5 million. The Venus case reminds us that sophisticated groups like the Lazarus group are constantly improving how they do this.

Lazarus Group’s sophisticated attacks target the platform globally

The Lazarus Group’s attacks are of particular concern. In 2025 alone, they stole record-breaking amounts, including 1.5 billion people from Bybit and hundreds of millions from other exchanges and bridges. Their businesses are supported by the state and aim to fund North Korea’s programmes while avoiding international sanctions. Even well-configured platforms are at risk when attackers combine technical skills with social manipulation.

Venus Protocol is setting new standards for crisis management

Venus Protocol recovery sets new standards for crisis management. Emergency governance worked in real time with rapid detection, collaboration between multiple security companies, and critical community action. However, this case also emphasizes that human behavior remains the weakest link. Hardware wallets cannot be fully protected from compromised software or carefully planned social engineering. Users should double-check transactions, download updates only from official sources, use layered security, and pay attention to unexpected software requests. The Venus Protocol incident shows how quickly coordinated actions can stop potentially catastrophic losses. It also highlights the constant risk posed by skilled attackers like Lazarus Group.