Linea, Ethereum’s layer-2 solution aimed at enhancing scalability using zkEVM technology with over $1 billion locked, is pledging to enhance decentralization. Recently, Linea faced criticism after its team manually halted block production to block a hacker’s address.
This decision was made in response to an attack on Velocore, a decentralized exchange built on Linea, where the hacker stole $7 million. The incident sparked concerns over Linea’s commitment to decentralization, as the move to censor a single address raised questions about network governance and autonomy.
Linea Halts Block Production to Address Hacker’s Threat
In a thread dated June 3, the Linea project team confirmed their decision to suspend block production, emphasizing that it was a serious and carefully considered action.
Linea status. Source: X
The team cited one of the primary reasons for halting the sequencer was to prevent a hacker from selling a substantial amount of acquired tokens for ETH. This preemptive measure aimed to prevent broader issues in the ecosystem, particularly related to the exploitation of liquidity pools.
The block production suspension occurred during a critical hour, spanning from block 5,081,800 to 5,081,801. This pause allowed Linea to assess the situation thoroughly. During this period, efforts were focused on collaborating with the Velocore team to formulate and implement responses to the vulnerability.
Linea Faces Criticism and Commits to Decentralization Amid Hacker Incident
Following Linea’s decision to halt block production, concerns have arisen within the crypto community regarding the temporary network shutdown, which affected assets valued at over $1.2 billion, as reported by L2Beat.
Acknowledging the centralized nature of their current technical operations, Linea has emphasized the importance of transitioning towards a fully decentralized and censorship-resistant network. Despite this incident, Linea reaffirmed its commitment to maintaining a “permissionless” and “censorship-resistant environment” as core principles.
Source: X
Concurrently, both Linea and the Velocore teams have taken proactive steps to address the exploit. These measures include on-chain negotiations and collaboration with centralized exchanges to freeze the funds that were exploited. Velocore has also published a post-mortem report detailing the impact on affected pools and ongoing efforts to compensate affected users.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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