Venus Protocol, one of the leading lending platforms on the BNB Chain, recently suffered a significant security breach, with an estimated $27 million in assets allegedly drained as a result of a suspected exploit in one of its core contracts. According to on-chain analysis and reports from security observers, the exploit involved the unauthorized updating of the Core Pool Comptroller contract to a malicious address, which then siphoned off a range of tokens including vUSDC and vETH. The stolen assets are currently held in the attacker’s contract and have not yet been swapped, raising uncertainty about whether the exploit will lead to a full-scale cash-out. Despite the incident, the Venus community has yet to issue an official statement on the matter, and security teams continue to monitor the situation closely.

The incident highlights the ongoing vulnerabilities within decentralized finance (DeFi) ecosystems, even among established protocols with substantial total value locked (TVL). At its peak, Venus held over $7 billion in assets, making it a critical player in the BNB Chain’s DeFi landscape. The platform functions as a money market where users can deposit assets such as stablecoins and major tokens to earn interest or collateralize loans. Its native XVS token plays a vital role in governance and protocol incentives. The current breach underscores the need for robust security audits and continuous monitoring to mitigate risks in DeFi systems where smart contract vulnerabilities can lead to significant financial losses.

The exploit of Venus Protocol follows a similar incident involving Nemo, a yield protocol on the Sui blockchain, which was recently drained of $2.4 million in USDC. The attack on Nemo saw the malicious actor bridge the stolen tokens from Arbitrum to Ethereum, according to reports from blockchain security firm Peckshield. This incident caused the total value locked in the Nemo yield trading platform to drop drastically, from over $6 million to $1.53 million, as tracked by DeFiLlama. These consecutive attacks demonstrate the persistent threats facing DeFi platforms, particularly as institutional adoption of digital assets continues to grow.

A broader cybersecurity report by ReversingLabs has also highlighted a new and sophisticated tactic being used by hackers: concealing malware within Ethereum smart contracts. This method allows malicious actors to disguise harmful traffic as normal blockchain activity, making it difficult for traditional security systems to detect. The report explains that Ethereum’s smart contracts, which are often perceived as secure due to their transparent and immutable nature, can be exploited by embedding malicious code that executes under the guise of standard operations. The report underscores how attackers can leverage these contracts to exfiltrate data, deploy ransomware, or establish backdoors, all while evading conventional detection tools.

The rise of such tactics underscores the evolving sophistication of cybercriminals within the blockchain space. As Ethereum and other platforms expand their use cases across industries—from finance to supply chain management—the potential attack surface grows accordingly. Cybersecurity experts emphasize the need for developers to adopt rigorous smart contract auditing, real-time monitoring for anomalous behavior, and formal verification to minimize vulnerabilities. Additionally, traditional cybersecurity teams must adapt their tools to effectively monitor and respond to blockchain-specific threats. This requires investing in solutions capable of analyzing smart contract interactions and identifying patterns that deviate from expected behaviors. The incident with Venus Protocol and other recent DeFi exploits serve as a stark reminder of the necessity for proactive security measures in the fast-evolving digital asset ecosystem.

Source: [1] BNB Chain-Based Venus Protocol Drained of $27M on Suspected Contract Compromise (https://www.coindesk.com/tech/2025/09/02/bnb-chain-based-venus-protocol-drained-of-usd27m-on-suspected-contract-compromise) [2] Sui-Based Yield Protocol Nemo Exploited for $2.4M in USDC (https://www.coindesk.com/markets/2025/09/08/sui-based-yield-protocol-nemo-exploited-for-usd2-4m-in-usdc) [3] Hackers Conceal Malware In Ethereum Smart Contracts According to New Cybersecurity Report (https://www.crowdfundinsider.com/2025/09/250211-hackers-conceal-malware-in-ethereum-smart-contracts-according-to-new-cybersecurity-report/)