Decentralized exchange Velocore addresses $7 million hack in postmortem, offers bounty to hacker | Headlines | News | CoinMarketCap

06/03/2024 00:12
Decentralized exchange Velocore addresses $7 million hack in postmortem, offers bounty to hacker | Headlines | News | CoinMarketCap

Decentralized exchange Velocore, which operates on the Telos, zkSync Era, and Linea blockchains, was exploited for about $6.8 million in tokens last …

Decentralized exchange Velocore, which operates on the Telos, zkSync Era, and Linea blockchains, was exploited for about $6.8 million in tokens last night through a vulnerability in the smart contracts which control its liquidity pools. 

A hacker was able to exploit the vulnerability in overflow logic in order to trick Velocore into turning a small withdrawal into a large deposit. With the help of a flash loan, the hacker was able to drain Velocore's "volatile pools" on zkSync Era and Linea, though the team was able to safeguard its assets on Telos. "Stable pools" were unaffected. 

"Despite undergoing multiple audits and implementing preventive features to ensure security, this unexpected incident happened swiftly. We are deeply saddened and sincerely apologize to our users …

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