Velocore, a decentralized finance platform, recently suffered a significant security breach, resulting in a loss of over $6.8 million. The perpetrator, identified by the address …..86ACaca3716bF, was able to transfer the stolen funds to the Ethereum network using bridges. The breach was detected by Beosin Alert, a Web3 threat detection service that specializes in identifying hacks, rug pulls, and vulnerabilities. The attacker then proceeded to withdraw the funds and convert them into $ETH, before transferring them to Tornado.Cash, an anonymous payment protocol designed to conceal the identities of both the sender and recipient of cryptocurrency transactions.
Velocore fell victim to an attack that resulted in a loss of $6.8+ million. The attacker successfully transferred the stolen funds to Ethereum through bridges, converted the funds into $ETH, and 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 has taken immediate action to address the breach and is currently working on implementing an on-chain negotiation system to resolve the issue. Additionally, the platform plans to provide a detailed technical analysis of the attack to shed light on the events that unfolded.
It is essential to note that the breach has not impacted Velocore’s activities on the Telos mainnet. The team remains committed to ensuring the security of their platform through continuous collaboration with the Telos Foundation. While all functionalities are currently suspended, Velocore assures its users that they will soon receive guidance on how to safely withdraw their funds.
The recent hack on Velocore serves as a stark reminder of the urgent need for effective threat mitigation in the DeFi sector. Cybercriminals continue to target Web3 and DeFi industries, posing a significant threat. As the concept of decentralized finance is relatively new and unexplored, platforms like Velocore have become prime targets for agile attackers. Therefore, it is imperative to prioritize their security and swiftly respond to any identified vulnerabilities.
Lastly, Velocore’s prompt detection of the system vulnerability, willingness to address the situation, and provision of documentation for secure fund withdrawals demonstrate their proactive approach. These experiences and lessons learned will undoubtedly contribute to the platform’s future growth. DeFi-related platforms remain highly attractive to hackers due to their lucrative nature, with a staggering $124 million lost in May 2024 alone, emphasizing the urgency of robust security measures in the past four years.
