Velocore Exploit on zkSync and Linea: $10 Million Loss and Market Impact

• An unprecedented security breach has hit Velocore, a decentralized exchange on zkSync and Linea blockchains, resulting in a staggering $10 million loss.
• Despite this significant breach, the activity on ZkSync and Linea blockchains remained unaffected.
• Authorities are scrambling for answers as Velocore collaborates with security experts to identify and rectify the exploit mechanism behind this attack.

Velocore, a prominent DEX on zkSync and Linea blockchains, suffers a major $10 million exploit; the crypto world is left in shock as investigations commence.

Hack Details and Immediate Aftermath

It was revealed that the breach targeted Velocore’s liquidity provider tokens, a critical component of the DEX’s infrastructure. Post-exploit, hackers managed to move a significant sum, translating over 700 ETH across blockchain networks to the Ethereum mainnet.

This exploit came as a shock, considering that Velocore had previously passed rigorous security audits from Zokyo, Hacken, and Scalebit. Interestingly, during the hack, Linea Blockchain experienced a one-hour pause in block production, the cause of which is still under investigation.

Operational Impact and Countermeasures

Fortunately for Velocore users, the stable pools remained intact, enabling users to withdraw their funds. Velocore’s team has engaged with top security firms and reached out to centralized exchanges to freeze the stolen assets, thus attempting to curb further financial damage.

Velocore indicated that they have isolated the exploit mechanism and are in the process of initiating an on-chain negotiation process with the hacker. A comprehensive post-mortem review is underway, and the team continues to track down the exploiter based on available clues.

Consequences on the Market

In the wake of the exploit, Velocore’s native token, VC, took a 5% hit, currently trading at $0.02267. Trading volumes surged by over 600% as news of the exploit broke, reflecting the market’s immediate reaction to the incident.

Minimal Impact on zkSync and Linea Protocols

Despite the turmoil, the zkSync and Linea protocols seemed largely insulated from the fallout. The volume of transactions and daily active addresses on these platforms showed no significant deviation, indicating steady ongoing operations.

Community Reaction and Next Steps

Unsurprisingly, the affected Velocore community members have been vocal, demanding refunds. At the time of writing, the project’s official stance on compensation and refund plans remained unannounced.

Conclusion

The Velocore exploit highlights the persistent vulnerabilities within the decentralized finance space. While Velocore’s robust security measures could not entirely prevent this breach, their prompt response illustrates the community’s resilience and the importance of quick, coordinated action. As the investigation unfolds, stakeholders remain hopeful for restitution and preventative measures to avert future exploits.