Velocore DEX Confirms Hack, Reports $6.8 Million in Losses

Velocore, a decentralized exchange, announced on June 2 that its network had been hacked, resulting in the theft of Ethereum tokens valued between $6.8 million and $10 million. The Velocore team is actively pursuing the hackers and has expressed a willingness to negotiate a settlement to recover the stolen funds.

Velocore Admits Hack, Estimates $6.8 Million in Losses

Velocore, a decentralized exchange on Zksync and Linea, announced on June 2 that its network was hacked, resulting in estimated losses of $6.8 million in Ethereum. Previous reports suggested that up to $10 million worth of users’ liquidity provider tokens may have been stolen. The Velocore team confirmed that hackers exploited vulnerabilities in the Balancer-style CPMM pool contract, leading to the platform halting operations.

Key Points:

• Hack occurred on June 2
• Estimated losses: $6.8 million
• Potentially stolen liquidity provider tokens: up to $10 million
• Exploited Balancer-style CPMM pool contract vulnerabilities

Velocore Hack: Funds Laundered, Team Implements Mitigation Measures

Velocore revealed that the attacker laundered stolen funds through Tornado Cash, used an exploit, and transferred the funds back via Across Bridge. To counter the breach, Velocore added a semi-pause function to maximize transaction costs, aiming to stop swaps but allow emergency withdrawals. Unfortunately, an error set the cost to 0%, failing to prevent the exploit. The team is actively pursuing the hackers and negotiating a settlement, while working with security partners and foundations to manage the breach’s impact. A compensation scheme is being developed for affected users.

Key Points:

• Funds laundered through Tornado Cash
• Semi-pause function failed due to a setup error
• Active pursuit and settlement negotiations with hackers
• Collaboration with security partners
• Compensation scheme for affected users underway