See More

Decentralized Exchange Velocore Suffers $10 Million Hack: Reports

2 mins
Updated by Daria Krasnova
Join our Trading Community on Telegram

In Brief

  • Velocore DEX on zkSync and Linea blockchains hacked, losing ~$10 million; hackers transferred 700 ETH to Ethereum mainnet.
  • According to Velocore documents, its security audits was passed by Zokyo, Hacken, Scalebit; Linea blockchain paused for an hour.
  • Velocore working with CEXs to freeze assets; stable pools unaffected; ongoing on-chain negotiation and post-mortem planned.
  • promo

Velocore, a decentralized exchange (DEX) on the zkSync and Linea blockchains, has been exploited, resulting in a loss of approximately $10 million.

This incident was initially flagged by “Officer’s Notes,” a threat researcher and writer. It highlights the persistent vulnerabilities in the crypto sector.

Velocore Investigates the Hack

Velocore reported that hackers targeted its liquidity provider tokens. These are integral to the exchange’s operations. Following the breach, the hackers already transferred over 700 ETH across chains to the Ethereum mainnet.

According to Velocore’s documents, the exchange had passed security audits conducted by Zokyo, Hacken, and Scalebit. Despite this, the hackers managed to exploit the decentralized exchange.

Concurrently, the Linea Blockchain experienced a temporary halt in block production during the hack. This pause lasted about an hour before normal operations resumed. The reasons behind this disruption remain unclear.

Read more: Crypto Project Security: A Guide to Early Threat Detection

Velocore Exploiters’ Transactions on Ethereum Mainnet. Source: Etherscan

Fortunately, Velocore’s stable pools were unaffected, allowing the withdrawal of funds from these reserves. The team is working with security experts and has contacted centralized exchanges (CEXs) to freeze the stolen assets, aiming to mitigate further damage.

“We’ve identified the exploit mechanism and are setting up an on-chain negotiation process. A post-mortem article is in the works. Tracking the exploiter with clues left behind. More updates soon. Velocore on the Telos mainnet has not been affected, and we are working with the foundation while functionalities are frozen. We will provide guidance on safely withdrawing all funds in the future,” Velocore updated.

The community members that lost the fund demand refund from Velocore. However, the project has not discussed the compensation and refund plans yet.

This incident is part of a larger trend. Just days earlier, DMM Bitcoin, a Japanese crypto exchange, reported a staggering $305 million loss due to a security breach. These successive hacks underline the sector’s ongoing security challenges. So far, in 2024, excluding the DMM Bitcoin incident, the industry has lost over $473.22 million to various exploits.

Particularly, the crypto industry lost over $52 million through 21 distinct incidents in May 2024.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2264-1.png
Harsh Notariya
Harsh Notariya is a journalist at BeInCrypto, who writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created educational reports on...
READ FULL BIO
Sponsored
Sponsored