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Velocore DEX suffers a $10 million loss in a major hack

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Crypto hack

Velocore, a decentralized exchange (DEX) operating on the zkSync and Linea blockchains, has had a security breach, leading to a financial loss of around $10 million. The hackers conducted a transfer of more than 700 ETH to the Ethereum mainnet, therefore emphasizing the persistent security concerns within the crypto industry.

The hack was first disclosed by a threat researcher as “Officer’s Notes,” who identified the security vulnerabilities inside the cryptocurrency sector.

Velocore said that the hackers specifically aimed at its liquidity provider tokens, which play a crucial role in the exchange’s functioning. Velocore was hacked, even though it had successfully passed security assessments conducted by Zokyo, Hacken, and Scalebit.

During the hack, the Linea Blockchain saw a temporary interruption in block production for one hour, however operations were subsequently restarted. Velocore’s stable pools remained unaltered, enabling customers to withdraw their cash.

Note that Velocore is partnering with centralized exchanges (CEXs) to immobilize pilfered assets and restrict further harm. The team is now establishing the method by which the exploit is being carried out and commencing a negotiating process that takes place directly on the blockchain.

An exhaustive examination is now underway, with Velocore actively monitoring the hacker’s movements based on the available evidence.

The individuals impacted by the cyber attack are insisting on receiving reimbursements, however, Velocore has not yet addressed any strategies for compensating them. This theft is one of many security breaches that have occurred in the cryptocurrency business.

DMM Bitcoin, for example, suffered a loss of $305 million as a result of a security breach. The cryptocurrency business suffered a loss of more than $473.22 million due to many hacking events in 2024. Specifically, in May 2024, there were 21 instances that resulted in losses over $52 million.

In order to mitigate future breaches, Velocore and other cryptocurrency exchanges should strengthen their security frameworks by conducting frequent and thorough security audits, maintaining continual surveillance for any abnormal activity, and engaging in partnership with leading cybersecurity professionals.

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