The Velocore Hack: A $10 Million Blow to DeFi
DeFi just got hit again, and this time it’s a $10 million blow. A hacker swiped funds from Velocore, a decentralized exchange (DEX) on the zkSync and Linea blockchains on June 2, 2024. This raises a big question: are our crypto holdings safe in the wild world of DeFi?
Uncovering the Cyber Breach
The breach was first discovered by cyber threat researcher Officer’s Notes. Velocore’s liquidity provider tokens, essential for the exchange’s operations, were compromised. The hackers stole over 1700 ETH, worth more than $7 million, and moved the funds to the Ethereum mainnet.
- The breach uncovered by Officer’s Notes
- Hackers stole over 1700 ETH
- Moved the funds to Ethereum mainnet
Security Measures in Place
Despite security audits by Zokyo, Hacken, and Scalebit, the hacker managed to exploit Velocore. Thankfully, the stable pools were unaffected, allowing users to safely withdraw their funds from these reserves.
- Audits by Zokyo, Hacken, and Scalebit
- Exploitation of Velocore platform
- Stable pools remained unaffected
Negotiations and Offers
Velocore is currently negotiating with the attacker after figuring out how the exploit occurred. They have offered a 10% white hat bounty for the return of the remaining funds by a specified deadline. However, the hacker has not responded yet.
- Negotiations with the attacker ongoing
- Offer of a 10% white hat bounty
- Hacker’s response pending
Impact on Velocore and Market Reaction
The hack had a significant impact on Velocore’s native token, VC, causing a drop in its value post-attack. However, the token has since recovered and is trading at $0.004127 at the time of writing.
- Impact on VC token value
- Recovery and current trading value
Future Outlook and DeFi Safety
Despite the hack, traffic on the zkSync and Linea blockchains remained steady, with both networks maintaining high transaction throughput and address activity. It is essential to stay vigilant and follow best practices to protect your crypto holdings.
Hot Take: Stay Safe in the Wild World of DeFi
DeFi remains a volatile space with security breaches posing risks to users’ funds. Stay informed, implement robust security measures, and exercise caution when interacting with DeFi platforms to safeguard your crypto assets in the evolving landscape of decentralized finance.
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