Altcoin
DEX Velocore is the victim of a $10 million exploit: here are the details
- Velocore, a DEX on zkSync and Linea blockchain, suffered an exploit resulting in a $10 million loss
- However, activity on ZkSync and Linea remained unchanged
Velocore, a decentralized exchange (DEX) that operates on the zkSync and Linea blockchains, was exploited today, resulting in an estimated loss of $10 million. The incident was initially reported by Officer’s Notes, a threat researcher and writer, highlighting persistent vulnerabilities in the cryptocurrency industry.
The hackers get to work
Velocore reported that hackers targeted its liquidity provider’s tokens, which are integral to the exchange’s operations. Following the breach, hackers transferred over 700 ETH across chains on the Ethereum mainnet.
Source: X
Although Velocore passed security checks conducted by Zokyo, Hacken, and Scalebit, hackers managed to exploit the decentralized exchange. At the same time, the Blockchain Line saw a temporary halt in block production during the hack, which lasted about an hour before normal operations resumed. The reasons for this interruption were not yet clear at the time of writing this article.
Fortunately, Velocore’s stable pools were unaffected, allowing the withdrawal of funds from these reserves. The team is currently working with security experts and has contacted centralized exchanges (CEX) to freeze the stolen assets in an effort to mitigate further damage.
According to Velocore, the team has identified the mechanism of the exploit and is now establishing an on-chain trading process. A post-mortem analysis is also being prepared, with the team also tracking down the exploiter using clues left behind.
Here it is worth noting that Velocore on the Telos mainnet remains unchanged. They are working with the foundation while the features are frozen.
Source: X
As expected, community members who lost their funds were quick to ask Velocore for a refund. As of this writing, however, the project had yet to address compensation and reimbursement plans.
Collateral damage
Velocore’s native VC token was also affected by the news of this exploit. At the time of writing, VC was down 5%, with the altcoin trading at $0.02267. Later, when news of the hack spread, volumes also increased by more than 600%.
For their part, the zkSync and Linea protocols have remained relatively unchanged by this update. The overall number of transactions remained relatively the same for both networks. Furthermore, the addresses active daily on the internet have also remained stable despite this unfortunate episode.
Source: Artemis