A decentralized exchange, Velocore, which operates on zkSync and Linea blockchains, experienced a hack that resulted in a loss of around $10 million. The Linea blockchain briefly halted its functions but has now returned to normal.

Security Breach and Immediate Response

The breach targeted Velocore’s liquidity provider tokens, crucial for the DEX's operations, leading to the transfer of over 700 ETH to the Ethereum mainnet. Despite undergoing security audits by firms like Zokyo, Hacken, and Scalebit, the hack still occurred.

In response, the Linea blockchain paused block production for about an hour to address the situation and minimize damage. This incident highlights that blockchain technologies can still have vulnerabilities despite extensive security measures.

Community Response and Mitigation Efforts

Following the attack, Velocore has been working with security experts and centralized exchanges to stop the movement of the stolen funds. Their team is also implementing an on-chain negotiation system and conducting a thorough analysis of the breach and their subsequent actions.

Ensuring Continued Operations and User Safety

The stable pools of Velocore remain unaffected, ensuring that funds in these pools are secure. Velocore's strategy involves continuously identifying the hackers and protecting user funds.

Operations on the Telos mainnet have not been impacted, but some features have been temporarily disabled as a precaution. Velocore assures users that funds can be safely withdrawn and is collaborating with the foundation to restore full functionality and security.

Conclusion

This incident is part of a worrying trend in the crypto world, where even platforms with multiple security reviews can still fall victim to sophisticated hacks. Following the $305 million loss by DMM Bitcoin, the total crypto losses in 2024 have surpassed $473 million.