DeFi Hack: Vee Finance Losses $35 Million To Hackers Following Mainnet Launch
September 24 2021 - 9:00PM
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One of the major threats to businesses online, not only the crypto
industry, is cybercriminals’ attacks. Even though the existing
networks are supposed to be safe and secure, attackers often find
loopholes to exploit them in the bid to steal investors’ funds.
This is not new in the online world. There have been occasions when
hackers even forced companies to shut down. The decentralized
finance sector has seen a lot of growth in recent times, but the
growing exploitation cases are becoming alarming. Many protocols
have suffered such attacks amounting to losses to the tune of
millions of dollars. The latest to record such an exploit is Vee
Finance based on the Avalanche Blockchain. Hackers stole $35
million from this protocol a few days after its mainnet went live
on the host network. Before reporting this incident, Vee Finance
stopped all its transactions on September 20, 2021. The team
suspected questionable activities in the network and had to stop
rendering services to users. Vee Finance Lost Money In BTC And ETH
The two cryptos that hackers stole are BTC and ETH. The total
number of BTC was 214, while ETH was 8,804. Checking the value of
both at press time, the amount was above $35M. According to what
the team revealed, the hackers targeted a particular address
through the trade contract address of the protocol. Related Reading
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Effect? As soon as the Vee Finance team discovered this exploit,
they stopped rendering the contract and also stopped all borrowing
and depositing functions on the platform. However, the team hasn’t
said much about the reason and how the hackers got access to the
address. All we could gather is that they’re fixing the issue and
attempting to facilitate a possible funds recovery from the
criminals. In its statement, Vee Finance assured users that its
goal is to protect their interests, and that’s what the team will
focus on achieving. Vee Finance To Alleviate Mining Operations The
recently exploited protocol is amongst the emerging DeFi projects
that aim to improve the mining features of the sector. Vee Finance
wants to boost processes such as leverage mining, liquidity mining,
and transaction mining. September 14 was the day it went live on
the Avalanche network. It also launched its liquidity mining
feature the same day. Like many other DeFi protocols, Vee Finance
also relies on Chainlink price feeds to get real-time value for
digital assets on-chain. This is part of the benefits of using
blockchain oracle solutions. Five days following the launch, the
protocol garnered a total of $300 million in TVL (Total Valued
Locked). Unfortunately, a few days later, the protocol lost $35
million to hackers. In recent times though, many other protocols on
the Avalanche blockchain have recorded such losses. Related Reading
| Mid-Cap Altcoins Hold Onto Highs Better Than Bitcoin And
Ethereum Some of them include Zabu Finance, which lost $3.2 million
to hackers, crashing its value to zero. But the Avalanche
Blockchain has been growing recently, and even the native token,
AVAX, is also rising in value. The AVAX Token is rising by 10% as
per the chart | Source: AVAXUSD on TradingView Featured image from
PYMNTS, charts from TradingView.com
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