As a researcher who has closely followed the developments in the decentralized finance (DeFi) and crypto space, I’m deeply concerned about the recent security breach at Velocore DEX on zkSync and Linea blockchains. The hack resulted in the theft of around $10 million worth of liquidity provider tokens, which is a significant blow to the DeFi community.
A decentalized exchange named Velocore, operating on zkSync and Linea blockchains, experienced a cyberattack, resulting in the theft of approximately $10 million. The Linea blockchain momentarily halted its functions but has now returned to regular operation.
Velocore DEX Security Breach and Immediate Actions
The security breach impacted Velocore’s crucial liquidity provider tokens, leading to over 700 ETH being moved to the Ethereum mainnet. Before this event, Velocore had undergone thorough security assessments from firms like Zokyo, Hacken, and Scalebit.
As a blockchain analyst, I’d interpret this situation as follows: The Linea blockchain temporarily halted new block additions for around an hour to rectify an issue and minimize its consequences. This occurrence underscores that despite robust security implementations, vulnerabilities persist in the realm of blockchain technologies.
Recent Reports: Suspicions Arise Regarding the Security of DEX Velocore on zkSync and Linea. It’s believed that malicious actors have exploited vulnerabilities, resulting in the theft of approximately $10 million worth of users’ Liquidity Provision (LP) funds. Linea experienced an interruption in block production but has since resumed normal operations. The perpetrators have moved a portion of the stolen Ethereum across different chains to the Ethereum mainnet. [Source: @officer_cia]
— Wu Blockchain (@WuBlockchain) June 2, 2024
After the incident, Velocore has joined forces with security experts and cryptocurrency exchanges to block the transfer of stolen funds. Their team is also creating an on-chain negotiation process and conducting a thorough analysis of the hack and their subsequent responses.
Continued Operations and User Protection
Despite this occurrence, the secure Velocore pools of the DEX have remained unaffected and users’ funds are still safe. The DEX is dedicated to consistently identifying the perpetrators and implementing measures to protect user assets.
Despite the Velocore functions on the Telos mainnet remaining unaffected, they have been temporarily disabled as a precautionary step. This ensures that all user funds can be securely withdrawn and collaborates with the foundation to restore full functionality and enhance security.
This event is troublingly representative of a growing issue within the cryptocurrency marketplace. Despite undergoing multiple security assessments, some platforms have fallen victim to sophisticated hacking attacks. Following this latest incident involving DMM Bitcoin and its $305 million loss, the overall financial damage in the crypto sector in 2024 now surpasses $473 million.
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2024-06-02 12:48