Avalanche-Based Vee Finance is Exploited Just After a Week of Its Launch

Table of Contents

Avalanche-based Vee Finance may be the next victim of ever-increasing DeFi crimes as it reports a potential exploit on its platform just seven days after its launch on mainnet.

In an announcement on Tuesday Morning, September 21, Vee Finance Twitter handle announced that it might be the victim of an exploit and all platforms services had been shut down to investigate the matter. The announcement says:

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

Not many details about the exploit are available at the time of press. It seems the exploit involves the Avalanche-Ethereum bridge that was launched in February of 2021 to allow users to transfer assets between the Avalanche and Ethereum ecosystems faster and at lower costs. Etherscan data shows that transaction involved Avalanche-Ethereum bridge and wrapped Ethereum (WETH).

Some tweets circulation on Twitter suggests that it may be another rug pull event as a Twitter account Rugdoc.io said that the address of the hacker and Vee Finance bridge contract is the same. RugDoc.io wrote:

“The address of the @VeeFinance hacker is the same address as the creator of the #veefinance bridge contract.”

Responding to this, the Vee Finance team said that the hacker address was not a Vee Finance contract address. They announced:

“This is not Vee.Finance contact.

Vee.Finance team will publish the investigation report as soon as possible.

Don’t trust any false information.”

After this clarification, Rugdoc.io’s tweet was deleted immediately. Some reports say that the exploited money may exceed $35 million.

Vee Finance is an Avalanche-based DeFi lending protocol platform that bridges the gap between traditional financial users and crypto users. Vee Finance aggregates many basic but important DeFi features such as Lend, Borrow, and Swap.

The protocol went live on mainnet just a week ago on Tuesday, September 14. Vee Finance completed private and seed funding rounds from some notable names of blockchain and crypto industry that include Huobi Ventures Blockchain Fund, Avalanche Asia Eco Fund AVATAR, MEXC Global, Crypto Avengers, AC Capital, AP Capital, Avalaunch, and many more.

Vee Finance was enjoying good times as just in 5 days after the launch as total value locked on the platform surpassed $300 million. The native token of Vee Finance VEE has also suffered badly due to this exploit. VEE has fallen almost 30% since the news of the exploit broke out. The token is trading at $0.13 per token at the press time that was $0.19 around the time of exploit announcement.

If you found this article interesting, here you can find more DeFi News


Follow us on Social Networks

Crypto Tutorials

Crypto Reviews