Ethereum’s layer-2 solution Linea halted block production on June 2, 2024, to prevent a hacker from exploiting $7 million from Velocore, a Linea-based decentralized exchange. The suspension, which lasted for an hour, was to stop the hacker from selling stolen tokens and causing further disruption to the ecosystem.
This decision highlighted Linea’s current reliance on centralized operations, despite its core values of being “permissionless” and “censorship-resistant.” The incident involved over $1.2 billion in locked value, sparking concerns within the crypto community.
Linea and Velocore teams are now working together on post-exploit measures, including on-chain negotiations and freezing funds on centralized exchanges. Both teams aim to enhance security and decentralization, which is critical for maintaining user trust and network integrity in the long run.
