Avalanche: $35 million hacker attack on Vee Finance
Avalanche: $35 million hacker attack on Vee Finance
Security

Avalanche: $35 million hacker attack on Vee Finance

By Stefania Stimolo - 22 Sep 2021

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Avalanche’s DeFi platform, Vee Finance, has suffered a $35 million hacking attack. Specifically, 8,804.7 ETH and 213.93 BTC were stolen. Here is the official announcement:

“Announcement: Our platform may have been exploited. All services have been paused. We are investigating the cause, please follow our official accounts for latest update. Thanks!”.

Avalanche and the hacker attack on Vee Finance

Vee Finance (VEE) is a decentralized finance (DeFi) lending platform built on Avalanche’s blockchain, which in turn offers a system of interoperability between blockchains.

The hacker attack, described by Vee Finance as an “incident”, as well as the loss of the equivalent of $35 million, led the DeFi platform to suspend all services offered to users.

Vee Finance is investigating how to handle the theft of the 8,804.7 ETH and 213.93 BTC. In its latest published report, the platform stressed that stablecoins such as USDT.e, USDC.e and DAI.e were not affected by the attack.

The platform also reported that it was able to locate and make contact with the hacker and that the hacker does not appear to have transferred or further processed the stolen cryptocurrencies yet.

The team is working to monitor the situation, along with code review agencies and trading platforms, and promises to announce progress on the incident.

Vee Finance attack
The hacker of Avalance platform has stolen $ 35 million

Avalanche and its developments in DeFi

Vee Finance is just one of many projects built on the Avalanche blockchain, which include Benqi.fi, Trader Joe, Lydia Finance, Shroom Finance and Osiris.

Avalanche is an open source platform for launching decentralized applications (dApps), focused specifically on DeFi.

Due to its scalability, instant transactions and minimal fees, it was also one of the many blockchains chosen by Tether (USDT), last May 2021.

Not only that, Avalanche is also compatible with Solidity, one of the most advanced and widely used programming languages to also build dApps on Ethereum’s blockchain.

Its crypto AVEX now rides the leaderboard by market capitalization, with a market cap above $14 billion and a price that, just this month, touched its ATH or All Time High of $70.

Hacker attacks in DeFi

Avalanche’s Vee Finance joins a series of DeFi projects that have been attacked by hackers for sums exceeding six zeros. 

Last August, Cream Finance‘s DeFi project also suffered a major $18 million hack, the third attack in 2021 alone.

The same month, the $600 million attack on Poly Network seems to have had a happy ending. The hacker appears to have returned some of the stolen money, proving that he had acted to expose the vulnerability of the network of the DeFi project.

 

Stefania Stimolo

Graduated in Marketing and Communication, Stefania is an explorer of innovative opportunities. She started out as a Sales Assistant for e-commerce, and in 2016 she began to develop a passion for the digital world, initially in the Network Marketing sector, where she discovered and became passionate about the ideals behind Bitcoin and Blockchain technology, which lead her to work as a copywriter and translator for ICO projects and blogs, and organize introductory courses.

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