DEX on zkSync and Linea, Velocore, was attacked, with an estimated loss of about 10 million USD. The project's VC Token price has dropped 92% since the incident.
DEX Velocore on zkSync and Linea was hacked, losing 10 million USD
"Opening the bowl" of hack attack in June 2024 was the Velocore DEX exchange on zkSync and Linea. On the morning of June 2 (Vietnam time), observers discovered that all of the floor's LP pools were drained, an estimated loss of 10 million USD.
Breaking: DEX Velocore on zkSync and Linea is suspected to be hacked, and all users' LPs were stolen, involving $10 million. Linea once stopped producing blocks but has now resumed. Hackers have transferred part of the ETH across chains to the Ethereum mainnet.
— Wu Blockchain (@WuBlockchain) June 2, 2024
H/T @officer_cia …
At 10:00 AM this morning, the project's official X account announced:
Emergency Notice
— Velocore | veDEX on zkSync Era / Linea ▪️ (@velocorexyz) June 2, 2024
Velocore has been exploited, resulting in the loss of most of the liquidity. Our CPMM pools have been affected, but the stable pools have not been impacted, so funds can be withdrawn on our stable pools.
We are working with security teams and foundations, and…
"Emergency notification,
Velocore was attacked, causing the loss of most of its liquidation pools. CPMM pools are affected, but the stablecoin pool is still safe so users can withdraw from the stablecoin pool.
We are working with security teams and contacting CEX exchanges to freeze the stolen assets.
We will continue to try to resolve the case."
Velocore is the first AMM DEX project on zkSync Era that uses the ve(3,3) model combined with the Protocol Owned Liquidity mechanism to optimize liquidation returns. Liquidity Pool (LP) is the main product of the project and is where the most assets are stored. Therefore, it is easy to fall into the sights of hackers.
Currently, the hacker has converted the collected assets into 700 ETH on the Ethereum mainnet. But the wallet address has been closely monitored by security experts, making it difficult to continue moving or transfer to the exchange to cash out.
In cases like this, the hacker will either leave the money lying around for a long time, or will accept to be a white-hat hacker, returning 90% of the assets to the project and keeping 10% as the bounty reward. Previously there was memecoin Normie , Stars Arena hacker or hacker attacking the Cooperative exchange .
The Velocore team also seems to want to negotiate with the attackers to get their assets back. Users are still "holding their breath" waiting for the project's next moves.
In addition, Wu Blockchain also said that Linea blockchain temporarily stopped Block production for about 1 hour after the incident. It is currently unclear the cause of the Block, and whether this block is related to Velocore being hacked or not.
Linea Blockchain stopped producing blocks between 5081800 and 5081801 for about an hour. The reason is currently unknown.
— Wu Blockchain (@WuBlockchain) June 2, 2024
Meanwhile, the price of Velocore's VC Token has dropped more than 92% since news of the hack broke.
Velocore (VC) price chart on CoinGecko. Screenshot at 11:50 AM on June 2, 2024
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