Vee Finance loses $ 35 million to hackers after mainnet launches

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One of the biggest threats to online businesses, and not just the crypto industry, is attacks from cybercriminals. Although the existing networks are supposed to be safe and secure, attackers often find loopholes to use to steal funds from investors. This is not new in the online world. There have been cases where hackers even forced companies to close.

The decentralized financial sector has grown a lot lately, but the increasing cases of exploitation are becoming alarming. Many protocols have suffered such attacks, causing millions in losses. The latest to have such an exploit is Vee Finance based on the Avalanche Blockchain.

Hackers stole $ 35 million from this log days after the mainnet went live on the host network. Before reporting this incident, Vee Finance stopped all of its transactions on September 20, 2021. The team suspected questionable activity on the network and had to stop providing services to users.

Vee Finance lost money in BTC and ETH

The two cryptos that hackers have stolen are BTC and ETH. The total number of BTC was 214 while the ETH was 8,804. When we checked the value of both at press time, the amount was over $ 35 million. According to the team, the hackers targeted a specific address using the protocol’s commercial contract address.

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As soon as the Vee Finance team discovered this exploit, it stopped processing contracts and also stopped all loan and deposit functions on the platform.

However, the team didn’t say much about the reason or how the hackers got access to the address. All we have found is that they are fixing the problem and trying to facilitate a possible recovery of funds from the criminals.

In its statement, Vee Finance reassured users that the goal is to protect their interests and that is what the team will focus on.

Vee Finance to facilitate mining operations

The recently used protocol is among the emerging DeFi projects aimed at enhancing the mining functions of the sector.

Vee Finance wants to boost processes such as leverage mining, liquidity mining and transaction mining. September 14th was the day it went live on the Avalanche network. On the same day, it also started its liquidity mining function.

Like many other DeFi protocols, Vee Finance relies on Chainlink price feeds to provide real-time value for digital assets in the chain. This is part of the benefits of using blockchain oracle solutions. Five days after launch, the protocol raised a total of $ 300 million to TVL (Total Valued Locked).

Unfortunately, the log lost $ 35 million to hackers a few days later. Recently, however, many other Avalanche blockchain protocols have seen such losses.

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They include Zabu Finance, which lost $ 3.2 million to hackers and plummeted its value to zero. But the Avalanche Blockchain has grown lately and the native AVAX token is also gaining 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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