Hackers Target Velocore DEX, Stealing $10 Million, Linea Blockchain Briefly Pauses
The post Hackers Target Velocore DEX, Stealing $10 Million, Linea Blockchain Briefly Pauses appeared on BitcoinEthereumNews.com.
Linea blockchain stopped producing blocks for about one hour. The event resulted from an exploit on the Velocore DEX. Hackers stole the entire liquidity pool on Velocore, amounting to $10 million. Prominent Chinese crypto journalist Colin Wu alerted the crypto community to a suspected exploit on Linea Blockchain, a Layer 2 scaling solution for Ethereum. In a recent post on X, Wu confirmed the blockchain paused block production between blocks 5081800 and 5081801 for about an hour, without providing a reason. Linea Blockchain stopped producing blocks between 5081800 and 5081801 for about an hour. The reason is currently unknown. — Wu Blockchain (@WuBlockchain) June 2, 2024 In a related post, Wu warned of a potential hack on Velocore, a decentralized exchange (DEX) on zkSync and Linea. He stated that the suspected hackers drained the entire liquidity pool on the DEX, amounting to $10 million, and transferred the stolen funds across chains to the Ethereum mainnet. Linea Blockchain addressed the issue on its status page, providing updates to users. The project confirmed Wu’s report and stated that it was investigating the incident: “Sequencer is stopped. We are currently investigating to pinpoint a root cause and remediate.” The Linea team did not elaborate or provide details about the hack but later informed users that they had implemented a fix for the exploit and were monitoring the results. Velocore confirmed the exploit and acknowledged the significant impact on its CPMM pools. However, the DEX reassured users of the platform’s stability, noting that they can safely withdraw funds from the remaining pools. The DEX stated that they have identified the exploit mechanism and are setting up an on-chain negotiation process. They claimed to be tracking the exploiters with clues they left behind while informing users that Velocore on the Telos mainnet was not affected,…
Filed under: News - @ June 3, 2024 11:18 am