Cybercriminal attacks are a major threat to businesses online, not just the crypto industry. Even though existing networks are supposed to be safe and secure, attackers frequently find loopholes to exploit in order to steal funds from investors. This is not a new phenomenon in the online world. On a few occasions, hackers have even forced businesses to shut down.
The decentralized finance sector has grown rapidly in recent years, but the increasing number of exploitation cases is concerning. Many protocols have been subjected to such attacks, resulting in millions of dollars in losses. Vee Finance, which is based on the Avalanche Blockchain, is the most recent to record such an exploit.
A few days after the protocol’s mainnet went live on the host network, hackers stole $35 million from it. Vee Finance halted all transactions on September 20, 2021, prior to reporting this incident. The team suspected questionable network activity and had to halt service delivery to users.
Vee Finance suffered a loss in BTC and ETH.
BTC and ETH are the two cryptos that were stolen by hackers. The total number of BTC was 214, while the total number of ETH was 8,804. At the time of publication, the value of both was greater than $35 million. According to the team’s findings, the hackers targeted a specific address via the protocol’s trade contract address.
When the Vee Finance team discovered this exploit, they immediately stopped rendering the contract as well as all borrowing and depositing functions on the platform.
However, the team hasn’t revealed much about the reason or how the hackers obtained the address. All we know is that they are resolving the problem and attempting to facilitate a possible monetary recovery from the criminals.
Vee Finance assured users in its statement that its goal is to protect their interests, and that the team will work hard to achieve that goal.
Vee Finance Will Help Mining Operations
The recently exploited protocol is one of the emerging DeFi projects aimed at improving the mining features of the industry.
Vee Finance wants to improve processes like leverage mining, liquidity mining, and transaction mining. It went live on the Avalanche network on September 14. On the same day, it also launched its liquidity mining feature.
Vee Finance, like many other DeFi protocols, relies on Chainlink price feeds to obtain real-time value for digital assets on-chain. This is one of the advantages of utilizing blockchain oracle solutions. Five days after its launch, the protocol received a total of $300 million in TVL (Total Valued Locked).
Unfortunately, hackers stole $35 million from the protocol a few days later. However, many other protocols on the Avalanche blockchain have recently experienced such losses.
Zabu Finance, for example, lost $3.2 million to hackers, causing its value to plummet to zero. However, the Avalanche Blockchain has recently grown in popularity, and the native token, AVAX, is also increasing in value.