Velocore, a decentralized exchange (DEX) operating on the zkSync and Linea blockchains, has fallen victim to a major security breach, resulting in a loss of approximately $10 million. This incident has once again raised concerns about the persistent security issues within the cryptocurrency sector.
The attack was first discovered by a security researcher named “Notes do Oficial,” who exposed critical vulnerabilities in the industry. The attackers exploited Velocore’s liquidity provider tokens, which are vital for the functioning of the exchange. As a result, these tokens were transferred, leading to the movement of over 700 ETH to the Ethereum mainnet.
Despite undergoing security audits conducted by renowned firms such as Zokyo, Hacken, and Scalebit, the Velocore platform was unable to prevent the exploitation. During the attack, block production on the Linea Blockchain was abruptly halted for an hour, although the specific reasons for this pause have not yet been clarified.
In response to the breach, Velocore has announced that it is collaborating with centralized exchanges to freeze the stolen assets and minimize further damage. In a recent statement, the Velocore team stated, “We have identified the exploit mechanism and are initiating a chain negotiation process. A comprehensive analysis is currently underway, and we are tracking the hacker using the clues they left behind. More updates will be provided soon.”
Additionally, it was mentioned that the exchange’s stable pools remain unaffected, allowing users to withdraw their funds without any issues. Ongoing communication with the Telos foundation ensures the security and smooth operation of Velocore on this platform’s mainnet.
The affected community has already started demanding refunds, although Velocore has not yet outlined specific compensation plans. This incident highlights the urgent need to enhance security measures across all cryptocurrency platforms.
In 2024 alone, the crypto sector has already suffered losses exceeding $473.22 million due to security breaches, excluding the recent $305 million loss by DMM Bitcoin. In May of this year, 21 incidents resulted in additional losses of over $52 million, underscoring the significant challenges that still need to be addressed.
Disclaimer: The opinions expressed in this article, by both the author and individuals mentioned, are solely for informational purposes and should not be construed as financial or investment advice. Investing or trading cryptocurrencies carries a risk of financial loss.
Editor’s Choice:
Pepe (PEPE) surpasses Polygon (MATIC) in market value, indicating a rise in popularity.
Is a bull run imminent for Ethereum? The ETH cryptocurrency has risen by 25% since the approval of ETFs.
