A day doesn’t pass without seeing a new hack case in cryptocurrencies. This has become a common occurrence. On Friday, the centralized exchange DMM Bitcoin was hacked, resulting in a loss of $300 million. Subsequently, a decentralized exchange was hacked, leading to a loss of around $10 million.
Velocore Hacked
The cryptocurrency exchange Velocore, operating on the zkSync and Linea networks, became the target of attackers. The hacking of cryptocurrency platforms, especially decentralized ones, is a frequent occurrence. These attacks, often due to a lack of code auditing, can lead to massive losses.
Attackers can launder the loot they obtain through crypto mixers and other methods. This makes it simpler than hacking any bank and holding onto the loot afterward.
The Velocore attack was first reported by a threat researcher and writer known as “Officer’s Notes.”
Details of the Velocore Attack
The team confirmed in an announcement that liquidity provider tokens were targeted. Following the breach, the attackers moved over 700 Ether to the Ethereum mainnet. According to Velocore’s documents, the exchange had been audited for security by Zokyo, Hacken, and Scalebit. Despite having the code audited by three different companies, the attackers found a way in.
At the same time, the Linea Blockchain experienced a one-hour pause during the attack. The reason for the halt in block production during the attack remains unclear. In their latest announcement, the team stated that they are in discussions with many parties, including centralized exchanges, considering all options, including freezing assets.
“We have identified the exploit mechanism and are establishing an on-chain negotiation process. A post-mortem article is being worked on. The exploiter’s trail is being tracked with the clues left behind. More updates soon. Velocore on the Telos mainnet was not affected, and we are working with the foundation while functions are frozen. We will provide guidance on safely withdrawing all funds in the future.”
Will investors who lost their money get it back? The team has not yet announced a roadmap for reimbursement or compensation. So far, excluding this latest incident, $773 million worth of exploits have occurred in the first six months of the year. In May alone, attackers stole $51 million in 21 different attacks.
