Cryptocurrency hacks are now a daily occurrence. On Friday, DMM Bitcoin, a centralized exchange, was hacked, resulting in a $300 million loss. Soon after, a decentralized exchange suffered a hack, losing about $10 million.

Velocore Under Attack

The cryptocurrency platform Velocore, which operates on zkSync and Linea networks, became the latest target of hackers. Hacks on crypto platforms, especially decentralized ones, happen frequently. These attacks often occur due to insufficient code auditing and can cause significant financial losses. Visit COINTURK FINANCE for the latest updates on finance and business.

Hackers can easily launder their stolen assets through crypto mixers and other techniques, making it easier than robbing a bank and keeping the loot.

The Velocore breach was first identified by a threat researcher and writer known as “Officer’s Notes.”

Details of the Velocore Breach

The Velocore team confirmed in an announcement that liquidity provider tokens were the target. The hackers managed to transfer over 700 Ether to the Ethereum mainnet following the breach. According to Velocore’s records, the exchange's security had been reviewed by Zokyo, Hacken, and Scalebit. Despite these audits, the hackers found a way to exploit the system.

During the attack, the Linea Blockchain also paused for an hour. The cause of this halt in block production is still unknown. In their latest statement, Velocore mentioned they are in discussions with various parties, including centralized exchanges, and are exploring all options, such as freezing the stolen assets.

"We have identified how the exploit occurred and are setting up an on-chain negotiation process. A detailed report is being prepared. We are tracking the hacker’s trail with the clues they left behind. More updates will follow. Velocore on the Telos mainnet was not affected, and we are collaborating with the foundation while activities are paused. We will provide instructions on how to safely withdraw all funds soon."

Will investors recover their lost funds? The team has not yet provided a plan for reimbursement or compensation. So far this year, excluding this latest incident, there have been $773 million worth of exploits. In May alone, attackers stole $51 million across 21 different attacks.