Published June 4, 20242 min read

Critical Cyberattack on Velocore: Millions Lost and Lessons for the Web3 Industry

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artwork image for: Major Theft from Velocore: How an Innovative Protocol Became a Target for Cybercriminals

As everyone knows, after the recent Bitcoin halving, the Web3 industry has started to revive again. Many users who were previously skeptical of blockchain technologies and cryptocurrencies have begun to show interest and study them. This growing interest has led to a new surge of activity, but along with it, scammers, hackers, and cyberattacks have also become more active.

In today's news article, Coinmooner wants to share new insights from the world of Web3. Recently, a large amount of funds was stolen, but the theft was stopped and losses were minimized as much as possible. The incident involved a hacker extracting $6.8 million from Velocore.

Velocore is an innovative solution that combines advanced DEX methodologies with a high-performance mechanism. The protocols can incentivize veVC holders or provide veVC for strategic redistribution of emissions into their liquidity pools, thus ensuring a flexible and capital-efficient way to increase liquidity.


Cryptocurrency Theft Investigation: Analysis of Causes and Consequences

Coinmooner decided to look closely at and highlight the current situation related to large-scale cryptocurrency theft. According to the latest data, the attacker withdrew 700 ETH, approximately $2.6 million, through a bridge from ConsenSys. In response, block production was halted, and the hacker's address was censored. Platform representatives have contacted other exchanges, asking them to block funds from the criminal.

According to representatives of the decentralized exchange Velocore, the hacker was able to withdraw over $6.8 million in Ethereum (ETH) from pools on the Linea and zkSyncEra second-layer networks. Interestingly, many in the crypto community criticized the developers' actions to stop the blockchain, considering them against the principles of decentralization on which the entire cryptocurrency industry is based.

It is worth noting that this is far from the first attack on projects in the Web3 industry in 2024, and we have already written about some of them, such as “A New Blow in the Cryptocurrency Sphere: Theft of Three NFTs Valued in Thousands of Dollars” and “How CCTP Security Became a Weak Link: Lessons from the Attack on Pike Finance”, which you can read about in more detail. While this attack is not the most destructive in terms of financial losses, it highlights the vulnerability of modern crypto projects.

Our Coinmooner team will continue to monitor developments and promptly inform our readers of any new details in this case. We also want to remind you that such attacks can target not only projects but also individual users. Therefore, it is crucial to always use the latest protection methods to ensure the security of your funds.

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