Velocore Loses $6.8M in Major Security Breach

Velocore, a decentralized finance platform, recently lost more than $6.8 million in its funds due to a major security compromise. The attacker, with the address …..86ACaca3716bF, was able to transfer the stolen funds to the Ethereum network via bridges. It was discovered by Beosin Alert, a detection service for Web3 threats, including hacks, rug pulls, and vulnerabilities. After this, he withdrew the funds and converted the same to $ETH and transferred to Tornado.Cash, an anonymous payment protocol designed to hide the sender and the recipient of crypto transactions.

Velocore Assures Safe Fund Withdrawals After $6.8M Hack

After the attack, Velocore was able to establish the approach used by the hacker with ease. They are now devising a form of on-chain negotiation to deal with the problem. Moreover, Velocore does plan to create a lengthy technical breakdown of the attack in order to explain what transpired.

Therefore, it is important to note that the activities of Velocore on the Telos mainnet are not impacted by the breach. The team is consistently partnering with Telos Foundation to ensure the security of their platform. Although all functionalities are currently suspended, Velocore also ensure users that they will soon explain how one can withdraw their money safely.

Velocore’s Hack Response Highlights Need for Rapid Threat Mitigation in DeFi

This not the first time Web3 and DeFi industries are facing cybercriminals, and it points out an incredibly high threat. However, the idea of decentralized finance is very fresh and unexplored, and such platforms have become a direct target for most agile attackers. Therefore, their protection should be ensured and response to a detected problem should be rapid.

Lastly, Velocore has performed well by detecting a vulnerability in the system in time, a wish to discuss the situation, and preparing documentation to allow people to withdraw their funds safely. It means that experience and lessons learned will help them to build a future. DeFi-related platforms are the favourite targets of hackers nowadays because they prove very lucrative for them. $124M has been lost in May 2024 alone and the number is huge for the past 4 years.