ChainCatcher news, according to Cointelegraph, the DeFi asset management protocol Velvet Capital, supported by Binance Labs, has been forced to temporarily shut down its website to prevent a large-scale phishing attack. Members of the X community reported unusual activity on Velvet Capital's trading platform on April 23. Users attempting to connect to the front end were prompted to approve wallet access to the protocol. Following an internal investigation, Velvet Capital issued a cybersecurity alert advising investors to reject all wallet connection requests from the application until further notice. Investors who may have approved fraudulent requests need to revoke wallet access to the protocol to avoid loss of funds. Additionally, Velvet Capital has disabled the application to minimize the potential for further losses to investors.Velvet Capital's founder Vasily Nikonov announced the website shutdown on Telegram: "Please refrain from interacting with the Velvet website; we are shutting down the site for maintenance and to investigate the issue. A post-mortem analysis report will be released once the issue is resolved." Nearly two hours after the website was shut down, Nikonov stated that he was working with the technical team and security researchers to regain control of the website from the hackers.Blockchain investigation firms Blockaid and Scam Sniffer had already confirmed the website was hacked before Velvet Capital officially announced the breach. Since 5:39 AM (UTC) on April 23, users who have confirmed any transactions on Velvet Capital may have become victims of cybercrime. Nikonov advised these users to submit their issues on Discord and share transaction details with the Velvet Capital team for remediation. Nikonov emphasized that as of 6:50 AM (UTC), no users had reported losses.