DeFi platform Venus suffers vulnerability with $88 million reportedly locked up

Decentralised money market platform, Venus, has suffered a vulnerability that could see investors lose more than $88 million in Bitcoin and Ethereum.

According to Chain News, which cites the Binance Chain block explorer, users on the Venus platform have been instructed to “retreat” by Cobo co-founder, Shenyu.

His warning relates the large amount of assets currently being held in the lending pool, on which he states: “The price may plummet and there is a hidden danger that Bitcoin and other value coins cannot be returned.”

The potential vulnerability is also connected to the integration with Cannon (CAN) lending, with more than $157 million in CAN tokens being recently transferred to the platform before being “vacated”.

Speculation has been mounting on social media as to whether Venus was the recipient of a hack, or whether it was a bug in the system.

Some have been reporting that the funds have been transferred back to the Binance Chain and that users are now able to withdraw, although this has not been confirmed.

This is not the first time the DeFi sector has shown its immaturity, with the infamous Yam Finance rebase bug that saw investors lose millions as its value plummeted by 99%.

It also adds a sense of importance around the auditing of DeFi code, with a large section of the industry still being vulnerable to hackers and exploits, which has the potential to harm investors.

For more news, guides and cryptocurrency analysis, click here.