Velocore DEX is a victim of hack, loses USD $10 million – DiarioBitcoin

Velocore DEX hacked on zkSync and Line, they lose USD $10 million in cryptocurrencies. The platform collaborates with CEXs to freeze stolen assets and improve security.

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• Hackers steal USD $10 million from Velocore DEX on the blockchains zkSync and Line.
• Blockchain security in question after incident.
• Velocore and CEXs collaborate to recover stolen funds.
  

On June 2, 2024, Velocorea decentralized exchange platform (DEX) on the blockchains of zkSync and Linesuffered a significant hack that resulted in the loss of USD $10,000,000.

This incident highlights persistent security weaknesses in the cryptocurrency sector.

Security breach in Velocore

The hackers managed to transfer more than 700 ETH to the blockchain Ethereumexposing serious vulnerabilities.

The first report came from a researcher known as “Officer’s Notes,” who highlighted weaknesses in the crypto sector’s security infrastructure. Despite having passed security audits with recognized firms such as Zokyo, Hacken and scalebitthe protocol Velocore was compromised.

The attack focused on liquidity provider tokens, essential elements for the platform to function. During the attack, the blockchain Line It halted block production for an hour, although operations later resumed.

Specifically, stable pools of Velocore were not affected, allowing users to withdraw their funds without problems.

Response and mitigation measures

Velocore is working together with centralized exchanges (CEX) to freeze stolen assets and minimize damage.

The company has identified the mechanism of exploitation and has initiated a chain negotiation process to resolve the problem, as indicated in a publication on the X social network.

“We have identified the exploit mechanism and are establishing an on-chain negotiation process. A detailed analysis is being prepared and we are tracking the hacker with the available leads. More updates soon“, they assured.

The impact of this attack has generated a wave of demands for refunds among members of the affected community, although Velocore has not yet addressed compensation plans.

Lessons and future needs

Despite security audits carried out by prestigious companies, the hacking of Velocore evidence that vulnerabilities in the crypto sector continue to be a serious problem.

The temporary pause in the production of blocks of Line during the attack adds complexity to the incident, questioning the robustness of security protocols in blockchain.

This hack adds to a series of security breaches in the crypto industry. Recently, the Japanese exchange DMM Bitcoin reported a loss of USD $305,000,000 due to a security breach.

In 2024, excluding the gap DMM Bitcointhe crypto industry has lost more than USD $473,220,000 in various hacks.

In May 2024 alone, there were 21 incidents resulting in more than USD $52,000,000 in losses, underscoring the urgent need for enhanced security measures across all platforms.

The hacking of USD $10,000,000 in Velocore DEX It is a stark reminder of the vulnerabilities in the crypto sector.

While Velocore takes action to address the gap and improve security, this incident highlights the broader need for stronger and more resilient security measures across the industry.

As the crypto landscape evolves, so must strategies to safeguard digital assets.

Original image from DiarioBitcoin, free to use, licensed under Public Domain

WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.