Velocore, a decentralized exchange (DEX) on zkSync and Linea, has been exploited by hackers, resulting in an estimated loss of $10 million. At the time of the hack, Linea blockchain saw a halt in block production that lasted about an hour before resuming normal operations. Wu Blockchain, a well-known Chinese crypto reporter, commented on Velocore’s hack.
Emergency Notice and Response
Velocore issued an emergency notice about the hacker’s exploitation and the resulting loss of liquidity. They confirmed that CPMM pools have been affected and that they are working with security teams and foundations. Furthermore, Velocore has also requested centralized exchanges (CEX) to freeze the stolen assets to reduce further damages.
Even though the exchange has undergone audits by firms like Zokyo, Hacken, and Scalebit to ensure the platform’s safety, hackers have somehow managed to exploit it. Despite the hack, Velocore’s stable pools remain unaffected, allowing for the withdrawal of funds.
Identifying the Exploit and Tracking Hackers
The people behind Velocore identified the exploit mechanism and are setting up an on-chain negotiation process to address the issue. They are also trying to track the hackers with the traces left behind. The platform stated, “We’ve identified the exploit mechanism and are setting up an on-chain negotiation process.” The team added,
A post-mortem article is in the works. Tracking the exploiter with clues left behind. More updates soon. Velocore on the Telos mainnet has not been affected, and we are working with the foundation while functionalities are frozen. We will provide guidance on safely withdrawing all funds in the future.
Linea Halt and Impact on Velocore’s Native Token
The Velocore hack temporarily halted block production on the Linea blockchain, disrupting the flow of operations. Although the blockchain resumed operations after an hour, hackers used this opportunity to transfer more than 700 ETH to the Ethereum mainnet.
Major Crypto Exchanges Near Licenses as Hong Kong Tightens RegulationsBecause of the hack, Velocore’s native token VC was also affected, resulting in a loss of over 5%. At press time, the coin’s price is $0.02257 and the two protocols zkSync and Linea remain unaffected as the total number of transactions on both networks remain stable.
