Linea, the Ethereum layer-2 blockchain, found itself at the center of controversy when it opted to halt block production following a breach on the decentralized exchange Velocore, which operates within its network. This decision came after approximately $6.8 million was siphoned off from Velocore, with 700 ETH—equivalent to over $2.6 million—being moved off the layer-2 network via an unnamed third-party bridge during the weekend of the incident.

Explaining its actions, Linea pointed out that its immediate inability to contact the Velocore team prompted the pause in block production, aimed at preventing further fund bridging and mitigating potential losses for users. Specifically, Linea halted the sequencer from block 5081800 to 5081801, allowing time for the Velocore team to address the vulnerability and mitigating the impact by censoring the hacker's addresses.

While Linea's decision was met with criticism from some quarters of the crypto community, notably Mert Mumtaz, CEO of Helius Labs, who voiced concerns about the long-term implications, others like Alex Gluchowski, CEO of Matter Labs, emphasized the necessity for decentralization in sequencers across layer-2 solutions to prevent similar incidents.

In response to the backlash, Linea reiterated its commitment to decentralizing its network and sequencer, asserting that achieving a fully decentralized and censorship-resistant environment is a primary goal. Despite acknowledging that rival networks often rely on centralized technical operations for protection, Linea remains steadfast in its pursuit of fostering a permissionless and censorship-resistant ecosystem.