A hacker exploited the Velocore DEX on the zkSync and Linea blockchains, resulting in a $10 million theft.
The zkSync and Linea blockchains power the decentralized exchange (DEX) Velocore, which a hacker gained access to. As a result, about ten million dollars were stolen. The Linea blockchain experienced a brief period of inactivity, but it has since returned to its usual operational state.
The attack compromised Velocore’s liquidity provider tokens, essential for the company’s operations. The hack consequently transferred over 700 ETH to the Ethereum mainnet. Prior to the issue, a number of businesses, including Zokyo, Hacken, and Scalebit, had conducted security audits on Velocore.
Linea Blockchain Halt Exposes Network Vulnerabilities
As a response, the Linea blockchain halted block production for around an hour in order to address the problem and reduce the damage. Despite the implementation of security safeguards, this interruption highlights the existence of vulnerabilities in blockchain-based network technologies.
Since the occurrence, Velocore has been working with security professionals and CEXes to put a stop to the flow of stolen cash in order to prevent any additional ramifications from becoming a reality. Additionally, their team has established a mechanism for on-chain negotiation and is currently conducting a comprehensive post-mortem examination of the breach and the steps taken after the intrusion.
Nevertheless, this has not had any impact on the stable pools that Velocore maintains, and there is no possibility that these pools will suffer a loss of funds. The action plan that the DEX will implement includes continuous processes to identify the perpetrators and guarantee the security of user funds. Conversely, the Telos mainnet’s Velocore operations remain unaffected, and as a precautionary measure, we have temporarily disabled the features.
Furthermore, it guarantees the safe withdrawal of all users’ funds and collaborates with the foundation to fully restore the system’s functionality and security. This incident fits into a troubling trend in the cryptocurrency field, hackers can still breach platforms that have undergone numerous security evaluations through coordinated attacks. This incident follows DMM Bitcoin’s $305 million loss, bringing the total losses in the cryptocurrency field in 2024 to over $473 million.