Velocore DEX lost $10 million in a major security breach.
Linea blockchain halted operations for an hour to enhance security.
The hack raised concerns about the effectiveness of these audits.
After a major security compromise on the Velocore decentralized exchange (DEX) that caused a loss of about $10 million, the Linea blockchain has resumed operations. The theft shows the vulnerabilities in the cryptocurrency industry, even though Velocore has completed security examinations.
Velocore DEX Suffers Major Security Breach
Operating on the zkSync and Linea blockchains,Velocore DEX experienced a severe security breach that compromised its liquidity provider tokens. This breach led to over 700 ETH being transferred to the Ethereum mainnet. The attack occurred despite Velocore passing security audits from respected firms such as Zokyo, Hacken, and Scalebit.
The hack has led to concern within the cryptocurrency community, as Velocore was considered a secure platform due to its auditing process. Users are now questioning the effectiveness of these audits and the security of decentralized exchanges.
Update on Velocore IncidentThe Velocore DEX was exploited. Our teams have been employing our ecosystem security measures to mitigate the damage from this attack. More info in this thread.Linea network remains secure, this only affected a 3rd party dapp.
— Linea (@LineaBuild) June 2, 2024
Linea Blockchain’s Immediate Response
The Linea blockchain halted operations for an hour in response to the hack. This suspension aimed to prevent further damage and allowed the team to implement security measures. Linea resumed normal operations after this brief interruption, signalling its commitment to maintaining a secure environment for its users.
Velocore’s stable pools held up in spite of the money loss, suggesting that not all of the company’s assets were affected by the hack. The incident also led to an examination of the platform’s security protocols.
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