Security Breach in This Altcoin: Millions of Dollars in Danger!

In a recent development, Velodrome and Aerodrome, behind the decentralized exchange and altcoin VELO, have issued urgent warnings to their users, revealing that their official websites have fallen victim to a security hazard. This alarming incident, suspected to be a domain name system (DNS) attack, poses a serious threat to user funds as malicious actors attempt to redirect users to phishing sites. Here are the details…

DNS attack on Velodrome and Aerodrome platforms

The decentralized finance (DeFi) community was shaken when Velodrome and Aerodrome announced that their websites, specifically velodrome.finance, had been compromised through what appeared to be a DNS attack. This type of cyber attack allows hackers to take control of a site and potentially redirect users to malicious contracts designed to siphon their funds.

Urgent warnings were issued by both Velodrome and Aerodrome, advising users to avoid interacting with their platforms until further notice. Velodrome’s official team statement at X emphasized the seriousness of the situation, saying, “Our front end is currently in danger. Please do not interact with Velodrome at this time. “The team is investigating and we will provide more information here when we receive it.” said. A similar notification was also published on Aerodrome’s official account on X. While there has been no official statement regarding the extent of impact on user assets, on-chain analyst ZachXBT has detected worrying activity.

Altcoin price fell

Over $40,000 was found to have been transferred to two specific addresses, indicating that user funds may have been compromised during the attack. Velodrome and Aerodrome, two leading decentralized exchanges, play important roles in the decentralized finance ecosystem. Currently the second largest decentralized exchange protocol on OP Mainnet, Velodrome has a total value locked of over $139 million. Meanwhile, it is worth noting that there has been a slight decrease in the price of Velodrome’s altcoin project VELO. Specifically, if we look at the 24-hour chart, the altcoin is down 2 percent.

Aerodrome, the largest protocol on Base, holds over $63 million in user funds, according to TVL. The attack not only raises questions about the security of these platforms, but also highlights the vulnerability of commonly used protocols such as DNS. As investigations continue, the decentralized finance community remains on high alert. Velodrome and Aerodrome users are strongly advised to be careful and wait for updates from the relevant teams.