- In a dramatic turn of events, the cryptocurrency market was stunned by news that emerged this morning. The decentralized exchange (DEX) platform Velocore, operating on zkSync and Linea Blockchains, has been targeted by a cyberattack.
- The breach has potentially resulted in the loss of around $10 million in altcoin assets belonging to users.
- This incident raises significant concerns about the security vulnerabilities in decentralized exchanges.
Velocore platform suffers a major attack, leading to significant asset losses. Read on to understand the implications for the crypto market.
Velocore Cyberattack: A Major Breach in the Crypto Space
Velocore, a decentralized exchange platform, recently fell victim to a significant security breach that has led to substantial financial losses. Initial reports indicate that the attack resulted in the theft of roughly $10 million worth of altcoins. The Velocore team has since initiated an investigation into the exploit and halted all platform operations to contain the damage.
Inside the Details of the Velocore Exploit
The incident was first reported by renowned crypto journalist Colin Wu via his Wu Blockchain platform, with further discussion by crypto commentator MartyParty. The Velocore team quickly responded with an “Emergency Notice,” confirming the exploit and detailing their response efforts. The attackers managed to transfer some of the stolen Ethereum tokens to the Ethereum mainnet, complicating the recovery process. Velocore’s official statement on this matter underlined their dedication to resolving the security breach and tracking down the perpetrator.
Velocore Exploit Update
We have identified the exploit mechanism and are establishing an on-channel negotiation process. A comprehensive post-mortem is forthcoming. We are actively tracking the exploiter through available clues. Further updates will follow.
The Telos mainnet deployment remains unaffected and…
— Velocore | veDEX on zkSync Era / Linea ▪️ (@velocorexyz) June 2, 2024
According to the notice, all transactions on the platform have been suspended, and efforts are being made to recover the stolen funds. However, it is noted that the hackers have already moved some of the stolen Ethereum tokens across different blockchains. Velocore is collaborating with security experts to address and mitigate the issue.
Impact on Altcoin Prices
The news of the security breach has understandably rattled investors. While Velocore’s identification of the exploit mechanism is a positive development, there remains uncertainty over the recovery of the stolen assets. In the immediate aftermath, the price of Velocore’s native token, VC, dropped from $0.78 to $0.73, reflecting the shaken confidence among investors.
This incident has once again highlighted the security risks inherent in decentralized exchanges. The forthcoming announcements from Velocore will be crucial in determining the platform’s future and may influence wider market sentiments. Investors are advised to closely monitor their investments and adopt robust security measures to safeguard their assets.
Conclusion
In the wake of the hack, Velocore’s team has moved swiftly to protect investors and restore security. All platform operations have been paused, and the stolen assets have been frozen. The team has also identified the exploit mechanism and is working on resolving the issue. Velocore aims to integrate with the Telos Blockchain to create a more secure infrastructure. Stay tuned for further updates from Velocore as the situation develops.
