Velocore, a platform for decentralized finance, recently suffered a significant loss of over $6.8 million in funds as a result of a major security breach. The perpetrator, identified by the address …..86ACaca3716bF, successfully moved the stolen funds to the Ethereum network using bridges. This breach was detected by Beosin Alert, a service that specializes in identifying threats related to Web3, such as hacks, rug pulls, and vulnerabilities. Subsequently, the attacker withdrew the funds, converted them to $ETH, and transferred them to Tornado.Cash, an anonymous payment protocol that conceals the identities of both the sender and recipient in crypto transactions.
Velocore fell victim to an attack resulting in a loss of $6.8+ million. The attacker transferred the stolen funds to Ethereum via bridges, converted them to $ETH, and then 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 Ensures Secure Fund Withdrawals Following $6.8M Breach
In response to the breach, Velocore quickly identified the method used by the attacker and is now implementing an on-chain negotiation strategy to address the issue. Additionally, Velocore intends to provide a detailed technical analysis of the attack to clarify the events that unfolded.
It is important to note that the breach has not impacted Velocore’s operations on the Telos mainnet. The team continues to collaborate with the Telos Foundation to guarantee the security of their platform. While all functions are currently suspended, Velocore assures users that they will soon outline a safe method for withdrawing their funds.
Velocore’s Response to Hack Highlights Urgency of Threat Mitigation in DeFi
The recent attack on Velocore underscores the ongoing threat faced by the Web3 and DeFi industries from malicious actors. The decentralized finance sector is relatively new and unexplored, making platforms like Velocore prime targets for agile attackers. It is essential to prioritize security measures and respond swiftly to any detected vulnerabilities.
Ultimately, Velocore’s proactive approach to identifying system weaknesses, willingness to address the issue, and commitment to assisting users in safely withdrawing their funds demonstrate a valuable learning experience. These lessons will undoubtedly contribute to the platform’s future resilience. DeFi platforms remain attractive targets for hackers due to their profitability, with losses totaling $124 million in May 2024 alone, emphasizing the need for robust security measures moving forward.