Velocore, a decentralized finance platform, recently suffered a significant security breach that resulted in the loss of over $6.8 million in funds. The attacker, using the address …..86ACaca3716bF, was able to transfer the stolen funds to the Ethereum network through bridges. This breach was detected by Beosin Alert, a web3 threat detection service that specializes in identifying hacks, rug pulls, and vulnerabilities. The attacker then withdrew the funds and converted them into $ETH, which were subsequently transferred to Tornado.Cash, an anonymous payment protocol that conceals the sender and recipient of crypto transactions.
Velocore fell victim to an attack that resulted in a loss of $6.8+ million. The attacker transferred the stolen funds to Ethereum using bridges, converted the funds into $ETH, and sent them to https://t.co/sjV0KlHRpW.
Attacker address: 0x8CDc37eD79C5EF116b9Dc2A53Cb86ACaca3716bF
https://t.co/0GqIOgPHae pic.twitter.com/gy2k2A1bLs
— Beosin Alert (@BeosinAlert) June 2, 2024
Velocore Responds to Hack and Ensures Safe Fund Withdrawals
Following the attack, Velocore quickly identified the methods employed by the hacker. They are currently developing an on-chain negotiation process to address the issue. Additionally, Velocore intends to provide a detailed technical analysis of the attack to shed light on what transpired.
It is important to note that the breach does not affect Velocore’s operations on the Telos mainnet. The team is actively collaborating with the Telos Foundation to ensure the security of their platform. While all functionalities are currently suspended, Velocore assures users that they will soon provide instructions on how to safely withdraw their funds.
Velocore’s Response to the Hack Highlights the Urgency of Threat Mitigation in DeFi
This incident is not the first time that the Web3 and DeFi industries have encountered cybercriminals, highlighting the significant threat they face. As decentralized finance is a relatively new and unexplored concept, platforms like Velocore have become prime targets for agile attackers. It is crucial to prioritize their protection and respond swiftly to detected vulnerabilities.
In conclusion, Velocore has demonstrated its competence by promptly identifying a system vulnerability, expressing a willingness to address the situation, and preparing documentation to facilitate secure fund withdrawals. This experience and the lessons learned will undoubtedly contribute to the platform’s future development. DeFi-related platforms remain attractive targets for hackers, as evidenced by the staggering $124 million lost in May 2024 alone, emphasizing the pressing need for robust security measures in the past four years.
