Velocore, a decentralized exchange (DEX) operating on the zkSync and Linea blockchains, was exploited today, leading to an estimated...
Velocore, a decentralized exchange operating on the zkSync and Linea blockchains, was exploited today, leading to an estimated $10 million loss. The incident was initially flagged by Officer’s Notes, a threat researcher and writer, highlighting persistent vulnerabilities in the crypto sector.Velocore reported that hackers targeted its liquidity provider tokens, which are integral to the exchange’s operations.
Fortunately, Velocore’s stable pools were unaffected, allowing for the withdrawal of funds from these reserves. The team is currently working with security experts and it has contacted centralized exchanges to freeze the stolen assets in an effort to mitigate further damage. According to Velocore, the team has identified the exploit mechanism and is now establishing an on-chain negotiation process. A post-mortem review is being prepared too, with the team also tracking the exploiter using the clues left behind.
Here, it’s worth noting that Velocore on the Telos mainnet remained unaffected. They are collaborating with the foundation while functionalities are frozen.As expected, community members who lost their funds were quick to demand a refund from Velocore. At press time, however, the project was yet to address its compensation and refund plans.Velocore’s native token VC was also affected by news of this exploit. At the time of writing, VC was down by 5%, with the altcoin trading at $0.02267.
For their part, protocols zkSync and Linea remained relatively unaffected by this update. The overall number of transactions remained relatively the same for both networks. Moreover, the daily active addresses on the network also remained stable despite this unfortunate episode.Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates.
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