On June 2, 2024, another DeFi platform operating on zkSync and Linea networks suffered a $10 million exploit, highlighting ongoing vulnerabilities in decentralized finance.
The breach was detected by cyber threat researcher Officer’s Notes, revealing that Velocore’s tokens used for liquidity on the exchange were compromised. The hackers exploited liquidity provider tokens, stealing over 1700 ETH from users before transferring the funds to the Ethereum mainnet.
Velocore Dex Attack: Details and Response
The attacker exploited Velocore despite earlier security audits by Zokyo, Hacken, and Scalebit. The breach involved the hacker using funds obtained from Tornado Cash, redirecting them through Across Bridge and back to Tornado Cash to obscure the transaction. Approximately 1700 ETH, valued at around $7 million, were involved in the attack.
Fortunately, Velocore’s stable pools remained unaffected, ensuring users can withdraw their funds safely from reserves. The Velocore team is actively collaborating with cybersecurity experts and coordinating with centralized exchanges (CEXs) to freeze the stolen funds and prevent further losses.
Velocore Dex Exploit: Response and Recovery Efforts
Velocore has identified how the exploit occurred and is currently negotiating with the attackers through the blockchain. The team has offered a 10% white hat bounty to the hacker, urging for the return of the remaining funds by June 3, 8:00 UTC. Despite this offer, the hacker has maintained silence.
In their post-mortem analysis, Velocore assured affected users that they have taken a snapshot of the blockchain state before the attack. Once operations resume, the team plans to implement a comprehensive mitigation strategy to ensure fair compensation for those who lost funds in the attack.
Impact of Velocore Dex Hack on VC Token and Blockchain Traffic
The hack significantly impacted Velocore’s native token, VC, causing it to plummet to its lowest point post-attack. However, the token has since shown resilience and recovered to trade at $0.004127 at the time of writing.
Despite the severity of the Velocore exploit, the impact on traffic within the zkSync and Linea blockchains remained moderate. Both networks maintained relatively high transaction throughput and address activity on a daily basis, similar to levels observed before and after the attack.
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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