According to Techub News, according to Cointelegraph, DeFi asset management protocol Velvet Capital was forced to temporarily shut down its website due to abnormal activity to prevent major phishing attempts. Community members reported abnormal activity on the VelvetCapital trading platform on April 23, and users who tried to connect to the front end were prompted to approve their wallets to access the protocol.

An internal investigation led VelvetCapital to issue a cybersecurity alert, advising investors to reject all wallet connection requests for the application until further notice. According to blockchain investigator ZachXBT, the attacker successfully stole about $40,000 worth of crypto assets at the time.