The Linea blockchain has resumed normal operations after a significant security breach on Velocore DEX, which resulted in the loss of $10 million. Despite rigorous security audits, the hack highlights ongoing challenges in crypto security.

The Velocore DEX, built on the zkSync and Linea blockchains, was targeted by hackers who drained liquidity provider tokens, leading to the transfer of over 700 ETH to the Ethereum mainnet. Prior to the incident, Velocore had undergone security audits by companies like Zokyo, Hacken, and Scalebit.

In response to the hack, the Linea blockchain temporarily halted block production for about an hour to address the issue and mitigate its impact. This brief disruption underscores the ongoing vulnerabilities in blockchain technologies despite the implementation of security measures.

Following the incident, Velocore has collaborated with security professionals and CEXes to prevent further movement of the stolen funds. The team has developed an on-chain negotiation mechanism and is conducting a detailed post-mortem analysis of the breach and its actions after the intrusion.

The hack has not affected the stable pools of Velocore, and there is no risk of loss of funds from these pools. The DEX's action plan involves continuous processes of identifying the culprits and ensuring the safety of user funds. Velocore operations on the Telos mainnet have not been impacted, and the features have been turned off for a short period as a preventive measure. The platform guarantees that all user funds can be safely withdrawn and is cooperating with the foundation to restore full functionality and security.

This incident is part of a concerning trend in the crypto space, where platforms that have undergone numerous security reviews can still be penetrated by well-coordinated hacks. It comes in the wake of the $305 million loss by DMM Bitcoin and brings the total losses in the crypto space in 2024 to over $473 million.