The decentralized exchange Velocore was attacked. The hacker removed approximately $6.8 million in Ethereum (ETH) from the pools in the L2 networks Linea and zkSyncEra.
The Linea team decided to stop the sequencer to prevent further loss of funds from Velocore users.
The hacker managed to withdraw 700 ETH (~$2.6 million) from the ConsenSys-launched blockchain via a bridge. The developers stopped producing blocks for about an hour, "censored" the attacker's addresses, and turned to CEX to block the stolen assets.
"Velocore was still vulnerable, and we couldn't contact its team," they explained their motives.
However, the community considered their actions to stop the blockchain contrary to the spirit of cryptocurrency.
"Sequencer decentralization is not optional. Every serious L2 stack should participate in the race to make it first, " wrote Alexey Glukhovsky, co-founder of the company behind zkSync, Matter Labs.
He was answered by the head of product at Linea, Declan Fox. He agreed that decentralization is not an option. At the same time, the ConsenSys specialist believes that the protocol is "on the right track".
"Given that many Rollup frameworks are more than two years older than us and haven't made any headway, I'm very happy with our pace," Fox said.
Post-mortem on the exploit of Velocore
This incident is unlikely to extend to other protocols, so other users of @LineaBuild and @zksync can rest assured.
We apologize to all affected partners and users and are working diligently with various security partners to resolve the… pic.twitter.com/rfeqIwmMJX
— Velocore | veDEX on zkSync Era / Linea(@velocorexyz) June 2, 2024
The Linea team decided to stop the sequencer to prevent further loss of funds from Velocore users.
The hacker managed to withdraw 700 ETH (~$2.6 million) from the ConsenSys-launched blockchain via a bridge. The developers stopped producing blocks for about an hour, "censored" the attacker's addresses, and turned to CEX to block the stolen assets.
"Velocore was still vulnerable, and we couldn't contact its team," they explained their motives.
However, the community considered their actions to stop the blockchain contrary to the spirit of cryptocurrency.
"Sequencer decentralization is not optional. Every serious L2 stack should participate in the race to make it first, " wrote Alexey Glukhovsky, co-founder of the company behind zkSync, Matter Labs.
He was answered by the head of product at Linea, Declan Fox. He agreed that decentralization is not an option. At the same time, the ConsenSys specialist believes that the protocol is "on the right track".
"Given that many Rollup frameworks are more than two years older than us and haven't made any headway, I'm very happy with our pace," Fox said.
