The decentralized exchange (DEX) Velocore, built on the zkSync and Linea blockchains, was hacked, resulting in a $10 million loss. The Linea blockchain halted operations for an hour during the incident but has since resumed with enhanced security measures.
Despite passing audits by Zokyo, Hacken, and Scalebit, Velocore’s liquidity provider tokens were compromised, leading to the transfer of over 700 ETH to the Ethereum mainnet. The stable pools remained secure.
In response, Velocore has engaged with security experts and centralized exchanges (CEXes) to stop the movement of stolen funds. An on-chain negotiation mechanism has been developed, and a thorough post-mortem analysis is underway.
This incident follows a trend of significant hacks in the crypto space, highlighting vulnerabilities despite rigorous security reviews. The total losses in the crypto sector for 2024 have surpassed $473 million, raising concerns over security.
The strategic importance of this event underscores the need for continuous improvement in blockchain security measures to protect user funds and maintain trust in decentralized platforms.
