Velodrome (VELO), an altcoin project, was hacked. After the hack that took place in the past days, it became clear who was responsible. As a result of the latest statements about the Velodrome attack, the coin has lost 14 percent of its value. Here are the details…
A member of the Velodrome team stole $350,000 in altcoins
Velodrome reported in August that one of their team wallets had been breached. He stated that the attacker had withdrawn $350,000 from the project. The Velodrome announced on Saturday that a team member named Gabagool.eth had stolen funds from the project. Velodrome, a decentralized exchange (DEX), determined that the person responsible for the $350,000 theft that occurred in early August was a former team member. The DEX platform said anonymous coder “Gabagool,” known for its Twitter account Gabagool.eth, was responsible for the theft. The VELO token fell from $0.08 to $0.02 at the time of the hack. At the time of writing, it is changing hands at $0.027, down 15 percent.
Velodrome Finance, a trading and liquidity marketplace, announced on August 4 that $350,000 stolen was recovered. On August 4, one of Velodrome’s high-value wallets reserved for operating funds such as salaries emptied $350,000 before it was transferred to the company’s treasury multisig wallet. A later investigation revealed the identity of the attacker. This allowed the company to take back all the loot. The DEX platform used the following statements:
As the Velodrome team, we broke off our relationship with Gabagool. We are working with legal counsel to determine the best next steps.
Please join us on our Discord at 3PM EST for a public AMA discussing the findings.
— Velodrome (@VelodromeFi) August 13, 2022
Gabagool explains the reasons behind the attack
About six hours after the announcement, Gabagool released a note describing the various events that prompted him to attempt the theft. Velodrome’s biggest mistake was giving ownership of his wallet’s private key to five people, including Gabagool. Gabagool, like many other investors, lost a large amount of money during the 2022 crypto crash. To recoup the losses, Gabagool made the hasty decision to withdraw $350,000 in crypto to convert it to Ethereum (ETH) and send it to Tornado Cash.
He said that when Gabagool decided to return the stolen funds, its own fault had already been discovered. Overall, Gabagool admitted its mistake, saying it disappointed itself. Going forward, Velodrome has decided to revoke ownership of private keys from team members and instead install gnosis vaults for all monetary transactions.
BlueBenx, a Brazilian crypto lending platform, also encountered an attack, as we have reported as Kriptokoin.com. But it couldn’t compare to Velodrome Finance. BlueBenx reportedly blocked all 22,000 of its users from withdrawing their funds following a hack that allegedly consumed $32 million. While no details about the attack were disclosed, many investors expressed their doubts about the issue. Many people say this is a scam.
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