Roughly $10 million was stolen from Velocore, a decentralized exchange (DEX) based on the zkSync and Linea blockchains. The Linea blockchain momentarily ceased to function, but it has subsequently resumed regular operations.
Velocore DEX Security Vulnerability and Prompt Reactions
Since Velocore’s liquidity provider tokens are crucial to its operations, the theft caused over 700 ETH to be moved to the Ethereum mainnet. Companies including Scalebit, Hacken, and Zokyo had audited Velocore’s security measures before the event.
The Linea blockchain responded by halting block generation for around an hour to fix the problem and lessen its effects. This interruption demonstrates that blockchain technology still has flaws despite all the security precautions taken.
Breaking: DEX Velocore on zkSync and Linea is suspected to be hacked, and all users’ LPs were stolen, involving $10 million. Linea once stopped producing blocks but has now resumed. Hackers have transferred part of the ETH across chains to the Ethereum mainnet.
H/T @officer_cia…— Wu Blockchain (@WuBlockchain) June 2, 2024
Since the event, Velocore has worked with CEXes and security experts to stop the flow of the pilfered money and avoid further repercussions. Along with creating an on-chain negotiating mechanism, their team is working on a thorough post-mortem examination of the breach and what happened following the infiltration.
Operations and Safeguarding Users
Nonetheless, Velocore’s stable pools remain unaffected, and there is no chance of losing money. The ongoing processes of finding the offenders and guaranteeing the security of user funds are part of DEX’s action plan.
As a precautionary measure, the functionalities were temporarily disabled, while the Velocore activities on the Telos mainnet remained unaffected. The foundation also works with it to restore full functionality and security and ensure all user monies can be safely withdrawn.
This event is part of a worrying trend in cryptocurrency, where well-coordinated hackers can still breach sites that have undergone many security examinations. It follows DMM Bitcoin’s $305 million loss, bringing the total losses in the cryptocurrency market in 2024 to almost $473 million.
