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Crypto News – Velocore’s Rough Night: A $6.8 Million Heist Leaves Users Reeling

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Crypto News - Velocore's Rough Night: A $6.8 Million Heist Leaves Users Reeling

Velocore’s Rough Night: How a $6.8 Million Hack Unfolded

Crypto News- Last night, Velocore, a decentralized exchange operating across Telos, zkSync Era, and Linea blockchains, fell victim to an exploit that saw approximately $6.8 million in tokens vanish into thin air. The exploit capitalized on a vulnerability nestled within the smart contracts governing the exchange’s liquidity pools.

Exploiting Vulnerabilities: The Hacker’s Cunning Strategy

The attacker’s strategy was cunning; they manipulated an overflow logic flaw to transform a minor withdrawal into a substantial deposit, all under Velocore’s unsuspecting gaze. Aided by a flash loan, the hacker proceeded to drain Velocore’s “volatile pools” on zkSync Era and Linea, while assets on Telos remained secure. Thankfully, the “stable pools” emerged unscathed.

In the aftermath, Velocore issued a solemn post-mortem, expressing regret to its users for the breach of trust despite prior security audits and preventative measures. The flawed logic exploited has since been disabled to prevent any potential copycat incidents.

Navigating Decentralization: Linea’s Controversial Pause

The repercussions rippled beyond Velocore, affecting the ConsenSys-built Linea Ethereum Layer 2 network, which momentarily ceased block production in a bid to stem the losses. While Linea acknowledged its aspiration for full decentralization, it defended the temporary halt as a necessary measure to shield users, given the centralized technical operations still in place.

Meanwhile, Velocore extended an olive branch to the hacker, dangling a 10% white hat bounty in exchange for the return of the pilfered funds by June 3, 8:00 UTC. However, the hacker remains elusive, having laundered a portion of the stolen assets through Tornado Cash.

For those left reeling from the incident, Velocore pledged recompense, promising to devise a fair compensation plan based on a snapshot of the blockchain state preceding the attack. As operations gear up to resume, Velocore is steadfast in its commitment to right the wrongs suffered by its users.

Frequently Asked Questions (FAQ)

What happened to Velocore?

Velocore, a decentralized exchange operating on multiple blockchains, experienced an exploit resulting in the loss of approximately $6.8 million in tokens. The exploit targeted a vulnerability within the smart contracts governing the exchange’s liquidity pools.

How did the attacker carry out the exploit?

The attacker manipulated an overflow logic flaw to turn a minor withdrawal into a significant deposit, exploiting Velocore’s systems without detection. They further utilized a flash loan to drain Velocore’s “volatile pools” on zkSync Era and Linea blockchains while leaving assets on Telos secure. Fortunately, the “stable pools” were unaffected.

What actions did Velocore take following the incident?

Velocore conducted a post-mortem analysis, expressing regret to its users despite prior security audits and preventive measures. The flawed logic exploited was promptly disabled to prevent potential copycat attacks.

For the latest in crypto updates, keep tabs on Crypto Data Space.

Crypto News - Velocore's Response to $7 Million Hack: Bounty on Hacker's Head

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