- After a major hack on Velocore DEX, the Linea blockchain has resumed activities, shedding light on persistent security vulnerabilities in the crypto industry.
- Despite going through several audits from top security firms, Velocore DEX was compromised, raising concerns about the effectiveness of these evaluations.
- The incident saw the transfer of over 700 ETH to Ethereum’s mainnet, although stable pools on Velocore were reportedly unaffected.
Learn how Velocore DEX’s recent $10M hack unfolded and what it means for the future of blockchain security.
Details of the Velocore Hack and Immediate Countermeasures
Velocore DEX, integrated with zkSync and Linea blockchains, experienced a significant security breach resulting in a $10 million loss. The incident specifically targeted Velocore’s liquidity provider tokens, which are integral to its operations. In response to this breach, Linea blockchain halted its activities for approximately an hour to contain the damage and implement immediate security measures.
Impact Analysis and Subsequent Actions
The attack underscored existing vulnerabilities in blockchain systems, despite preemptive security audits by firms like Zokyo, Hacken, and Scalebit. The hackers managed to transfer substantial amounts of Ethereum, underscoring that even well-vetted platforms are at risk. To mitigate further risks, Velocore has engaged with cybersecurity experts and centralized exchanges (CEXes) to track and freeze the stolen assets.
Future Security Enhancements and User Assurance
Though the liquidity pools on Velocore were hit, the platform’s stable pools remained secure. Nightly operations on the Telos mainnet were also paused temporarily to safeguard user funds. Velocore is now focused on fortifying its security framework and has assured users that their funds are available for withdrawal. Additionally, an in-depth post-mortem analysis is being conducted to understand the breach and prevent future occurrences.
Conclusion
The Velocore hack has highlighted the ongoing security challenges in the crypto space, even for platforms that undergo rigorous security assessments. As the industry progresses, enhanced security protocols and real-time threat response mechanisms will be crucial in fostering trust and stability.
