Vee Finance Exploited for $35M on Avalanche

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Decentralized finance platform Vee Finance appears to have become the latest victim in this year’s DeFi exploit season.

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Details are thin on the ground at the moment but the Vee Finance team tweeted an alert that the protocol had been exploited on Sept 20.

“Our platform may have been exploited. All services have been paused. We are investigating the cause, please follow our official accounts for latest update.”

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A subsequent tweet followed pointing out the fraudulent contract and adding the team will publish an investigation as soon as possible. The report, which was published on Sept 21, stated that a total of 8804.7 ETH (around $26.2 million) and 213.93 BTC (around $9 million) was stolen

Avalanche exploit season?

Crypto sleuths digging through the addresses involved estimated the amount could be as high as $30 million, but the total was closer to $35 million.

The Vee Finance Telegram channel was rapidly filling up with investors raising concerns about a potential rug pull.

Just a day earlier, the Avalanche-based DeFi protocol had published a blog post boasting about its total value locked hitting $300 million. Vee Finance had been airdropping tokens and promoting yields of 600% for VEE/AVAX liquidity mining pools.

Vee Finance, which launched to mainnet on Sept 14, had the mission of “bridging the gap between traditional finance and DeFi and providing users with better digital asset management services.”

The cross-chain lending and borrowing platform had completed private and seed funding rounds from Huobi Ventures Blockchain Fund, Avalanche Asia, and a number of other venture capital firms.

The Vee Finance team has suspended the platform’s smart contracts and deposit functions to ensure the safety of the remaining funds.

On Sept 19, the Binance Smart Chain platform pNetwork was exploited for around $13 million in tokenized Bitcoin. Last week, the Avalanche-based Zabu Finance protocol was exploited for $3.2 million.

VEE token prices tank

Unsurprisingly, the protocol’s native VEE token has tanked over the past few hours. From a Sept 21 high of $0.235, VEE prices have slumped 45% to trade at $0.128 at the time of press according to CoinGecko.

VEE hit an all-time high of $0.854 on Sept 18 and has already crashed by 85% following the exploit.

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Martin has been covering the latest developments on cyber security and infotech for two decades. He has previous trading experience and has been actively covering the blockchain and crypto industry since 2017.

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