Vee Finance Suffers $35 Million Hack in Second Significant Attack on Avalanche

After monitoring several abnormal transfers, Vee Finance has confirmed it has been exploited to the tune of $35 Million.

By
Dardania Havolli
on
September 21, 2021
Category:
Blockchain News

Vee Finance Latest to Endure Hack

Decentralized Finance (DeFi) platform Vee Finance has become the second platform to suffer a significant hack on Avalanche in as many weeks. 

A total of 8804.7 Ethereum, and 213.93 Bitcoin was confirmed as exploited through an announcement on Vee Finance’s official Medium page. The attack comes a mere few days after the mainnet launch on the Avalanche network.

“The VEE Finance team has suspended the platform contracts to ensure the safety of more users’ assets, and the VEE Finance platform has now suspended the deposit and borrow function,” the team explained in the announcement. 

As the announcement was made public, the protocol’s native token, VEE, fell sharply from $0.23 to below $0.09, according to CoinGecko. Often when exploits like this are made public, it isn’t just the initial sum exploited that is lost, the aftereffect upon price can significantly affect users as well.

Source

Last week, Zabu Finance, an Avalanche-based DeFi application, was attacked as well. The exploit saw a loss of $3.2 million and dropped the price of the $ZABU token to near zero.

Another Hacker Offered Bounty Reprieve

As we saw with the pNetwork hack just 24 hours ago, projects are moving quickly to try to incentivize hackers in the aftermath of a significant loss. 

“Dear Mr/Ms 0x**95BA, This is VEE Finance team, we’re willing to launch a bounty program for the bug you identified. Please connect us via email or other contact you prefer,” the team reached out to the hacker via Twitter.

Although the bounty offered is usually a small percentage of the exploit, it offers the hacker a chance to return funds and earn a tidy sum without much hassle. This notion of post-hack bounties is becoming commonplace in the space, and we are yet to see how effective it can be. 

Vee Finance will still be reeling from this development and we will be tracking closely to report on how their response develops. 

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Dardania Havolli

Dardania is an experienced researcher, editor and writer who is currently completing his PhD in Creative Writing. He is passionate about blockchain technology and the impact it will go on to have on our lives. He holds bags mostly in BNB, SOL and IOTX.

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