Front-end attack hits Velvet Capital, defi protocol supported by Binance

The team at Velvet Capital is urging users not to connect their digital wallets to the protocol’s website due to a potential attack. It appears that hackers have targeted the website’s front-end, exploiting vulnerabilities and potentially compromising user data or performing unauthorized actions. While the specifics of the attack are unclear, the Velvet team is working to fix the issue with the help of security researchers and has assured users that the protocol’s smart contracts are not affected. Users are advised to avoid interacting with the website for now. According to a spokesperson for Velvet Capital, no known users have been impacted, but those who have fallen victim to the attack can create a ticket on the project’s Discord server. However, analysts at blockchain analytics firm Scam Sniffer argue that there may be victims, although no details have been provided. Velvet Capital, backed by Binance Labs, is the latest Binance-backed project to experience a security breach. This incident follows an attack on the OpenLeverage money market protocol, also backed by Binance Labs, which resulted in a $236,000 loss.