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$10 million in user LPs stolen, Linea Blockchain hit
A major security breach has occurred at the decentralized exchange (DEX) Velocore, which operates on zkSync and Linea. According to reports, hackers stole all users’ liquidity pools (LPs), with a total value of nearly $10 million. This incident left many questions in the crypto community, especially when Linea Blockchain temporarily stopped block production.
The news arrived for the first time via a X wire from Officer’s Notes, a well-known threat researcher and writer. The thread detailed the Velocore hack, revealing that all of the LP’s funds had vanished. Initial reports indicated that the hacker had transferred some of the stolen Ethereum (ETH) to the Ethereum mainnet.
A crucial fact was revealed where Linea Blockchain stopped block production between block numbers 5081800 and 5081801 for an hour. But what caused this breakup is still a mystery. The anomaly initially came to light from some information on the BlockSec Team’s Telegram chat before on-chain analyst EmberCN analyzed it further.
BladeSwap, another decentralized exchange on the native Blast_L2 chain, also responded to the situation. In a X post, Bladeswap clarified that, although it was a fork of Velocore, its vault uses a different pool contract calculation: the usual XYK pool (Uniswap v2 style), not the CPMM pool (Balancer style) part of the exploit. They assured their users that BladeSwap funds were safe and confirmed further investigation and implementation of additional security measures if necessary.
Velocore traces the source of the exploit and launches an on-chain investigation
Velocore revealed where the exploit came from and launched an investigation into the chain. The team is currently working on a detailed report that will outline the specifics of the breach and its impact. Velocore stressed that this particular flaw did not affect BladeSwap’s volatile pool.
Added on-chain analyst EmberCN more details to this, explaining how the hacker converted all the stolen assets into ETH and transferred them via a cross-chain bridge to the Ethereum mainnet. At the moment, at the address of that mysterious hacker there are 1807 ETH coins worth approximately $6,880,000.
Velocore has undergone three audits by reputable entities such as Zokyo, Hacken, and Scalebit. However, this breach exposed some weaknesses that escaped attention. However, Velocore’s investigation is being closely followed by the crypto community. This highlights the current difficulties in trying to secure decentralized finances, as well as an important requirement for strong and persistent security. The progress of the investigation will lead to further updates and information.
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