Decentralized exchange Velocore recently faced a significant setback, with hackers exploiting vulnerabilities in its smart contracts to steal approximately $7 million in tokens. The attack targeted Velocore’s liquidity pools across Telos, zkSync Era, and Linea blockchains. Despite undergoing audits and implementing security measures, the unexpected incident occurred swiftly, prompting the exchange to apologize to its users for the breach of trust.
Following the hack, the Linea blockchain team paused block production briefly in an attempt to mitigate losses, demonstrating the collaborative efforts to address the security breach. Despite these measures, the hacker managed to deposit a portion of the stolen funds into a cryptocurrency mixer, complicating recovery efforts. Velocore responded by offering a 10% bounty to the hacker for returning the remaining stolen funds by a specified deadline.
The incident underscored the ongoing challenges faced by decentralized exchanges in ensuring robust security measures. While Linea defended its decision to temporarily halt block production as a last resort to protect users, it highlighted the broader issue of centralized technical operations in decentralized environments. Despite the setback, Velocore remains committed to compensating affected users and implementing enhanced security measures to prevent future breaches, reaffirming its dedication to maintaining trust within the decentralized finance ecosystem.
