ETH
by BSCN
June 3, 2024
Linea stopped block production for an hour and censored the hacker's wallet to contain the threat.
Velocore, a decentralized exchange (DEX) platform on Linea and zkSync, recently faced a significant security breach, resulting in the loss of over $6.8 million.
Velocore was attacked and resulted in a loss of $6.8+ million. The attacker has transferred the stolen funds to Ethereum through bridges, swapped the funds into $ETH and then sent into https://t.co/sjV0KlHRpW.
— Beosin Alert (@BeosinAlert) June 2, 2024
Attacker address:
0x8CDc37eD79C5EF116b9Dc2A53Cb86ACaca3716bF https://t.co/0GqIOgPHae pic.twitter.com/gy2k2A1bLs
The attacker, identified by the address …..86ACaca3716bF, successfully exploited vulnerabilities in the platform's smart contract.
"700ETH moved off Linea via a 3rd party bridge. It was the middle of the night, Velocore was still vulnerable, and we could not get ahold of their team," stated the Linea team on X.
After gaining access to the funds, the hacker transferred them to the Ethereum network through bridges. The stolen funds were converted to ETH on the Ethereum network and then transferred to Tornado.Cash, an anonymous payment protocol that hides both the sender and the recipient of cryptocurrency transactions.
The Velocore team confirmed that the breach led to a loss of approximately $6.8 million worth of ether. Specifically, the attacker exploited vulnerabilities in the Velocore protocol's "Balancer-style CPMM pool contract."
It is crucial to note that this exploit was limited to volatile pools, leaving all stable pools unaffected. Based on this specificity, it is evident that the attacker had a thorough understanding of Velocore's infrastructure and targeted a known weak point within it.
Upon receiving the alert about the hack, the Linea team deployed a series of ecosystem security measures to mitigate further damage. One of the primary steps included halting the blockchain sequencer. This action was crucial in preventing additional funds from being bridged out by the hacker.
🔊Update on Velocore Incident
— Linea (@LineaBuild) June 2, 2024
The Velocore DEX was exploited. Our teams have been employing our ecosystem security measures to mitigate the damage from this attack. More info in this thread.
Linea network remains secure, this only affected a 3rd party dapp.
Linea stopped producing blocks for about an hour, specifically between block 5081800 and 5081801. During this critical period, the hacker’s wallet address was censored, effectively preventing the attacker from selling large amounts of ether.
In the aftermath of the attack, Velocore is reportedly working on tracking down the exploiter. The team plans to reimburse affected users once operations resume. They have already established the method used by the hacker and are now devising an on-chain negotiation strategy to address the issue.
Root cause has been identified already, and measures have been taken to prevent copycats from using the same method. We are coordinating with other security partners to determine the right time to release the post-mortem article.
— Velocore | veDEX on zkSync Era / Linea ▪️ (@velocorexyz) June 2, 2024
In the meantime, all buttons except for withdraw… pic.twitter.com/FF4p8sE16I
Despite the breach, Velocore assures users that activities on the Telos mainnet remain unaffected. Team members continue to work closely with the Telos Foundation to ensure the platform's security and integrity.
While all functionalities are currently suspended, Velocore says it will resume operations soon.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCN. The information provided in this article is for educational and entertainment purposes only and should not be construed as investment advice, or advice of any kind. BSCN assumes no responsibility for any investment decisions made based on the information provided in this article. If you believe that the article should be amended, please reach out to the BSCN team by emailing [email protected].
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