Velocore, the decentralized exchange operating on zkSync and Linea, is suspected of being hacked. The alleged security breach resulted in the theft of all users' Liquidity Provider tokens (LPs), which included a staggering $10 million.
Linea blockchain, which temporarily stopped block production, has now resumed its operations. The stop occurred between the 5081800 and 5081801 blocks and lasted approximately an hour. The reason behind this outage is unknown.
Hackers reportedly transferred some of the stolen Ethereum (ETH) across chains to the Ethereum mainnet, further complicating the situation.
Despite the ongoing crisis, Velocore maintains that it has passed three rounds of inspections. According to official documents, these audits were carried out by reputable companies such as Zokyo, Hacken and Scalebit.
Following the incident, BladeSwap, another Decentralized Exchange (DEX), released a statement acknowledging that Velocore had been hacked on the zkSync/Linea network. BladeSwap explained that the issue was related to Velocore's Fixed Product Market Maker (CPMM) pool contract calculation.
BladeSwap, a fork of Velocore, assured its users that their funds were safe. DEX clarified that Velocore does not use CPMM (Balancer style) pooling.
*This is not investment advice.
