Customers of the distributed exchange (DEX) Velocore, on zkSync and Linea, have reportedly lost approximately $10 million in money after it was hacked. The Velocore team started looking into the hack in reaction to the exploitation, therefore establishing an “on-chain negotiation process.”

Details of the Hack and Immediate Response

Chinese crypto reporter Colin Wu first revealed the attack on his Wu Blockchain page on X; later, crypto analyst Marty Party also shared the story.

After the hack, Velocore sent an “Emergency Notice” warning clients against exploitation. As a result, the crew shut down the platform, freezing the pilfered money. Still, the hackers allegedly were able to move some of the Ether tokens acquired across networks to the Ethereum mainnet.

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According to the DEX procedure, it had asked the security team for assistance in fixing the problem. The emergency alert issued by Velocore said,

Velocore said in its most recent article that the team has found the exploit technique and promised additional updates that are not too far off. The group also promised directions for safe disengagement in the future. Furthermore, the team said, “Velocore on the Telos mainnet has not been affected; we are working with the foundation while functionalities are frozen.”