Hackers Steal $7M from Decentralized Exchange Velocore

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A hacker successfully used a vulnerability in the overflow logic of Velocore to manipulate a small withdrawal and turn it into a large deposit.

By using a flash loan, the hacker drained Velocore’s “volatile pools” in zkSync Era and Linea, but assets on Telos were protected by the team. Despite taking precautions and undergoing audits, the incident occurred quickly and caught Velocore by surprise.

The team has apologized to its users and has addressed the logic flaw to prevent any further attacks.

This led to the temporary pause of block production on the ConsenSys-built Linea Ethereum Layer 2 network, but unfortunately, it was unsuccessful in mitigating the losses caused by the hacker’s attack.

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