Avalanche’s Vee Finance loses $35m to hackers a day after hitting $300m TVL

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys… read more.
on Sep 21, 2021
  • Avalanche recently saw one of its network’s youngest project get exploited for $35 million.
  • The project in question, Vee Finance, suffered an attack that caused its price to drop by 45%.
  • The attack came only a day after the project’s TVL hit $300m, causing Vee to halt all operations.

The DeFi sector has recently suffered a massive string of exploits, several of which targeted Avalanche (AVAX/USD)based projects. The most recent example is Vee Finance — a project that just got attacked yesterday, September 20th.

According to the project’s team, which posted the announcement of the exploit on Twitter, all services have been paused until further notice. For the moment, the developers are investigating the incident, trying to determine the cause and what exactly happened.

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Another tweet that followed soon after stated that there was a fraudulent contract that was most likely responsible for the issues. The team plans to make the report of their investigation public as soon as possible, which they did less than 24 hours later, earlier today.

The report revealed that around $35 million was stolen, with $9 million being in BTC (213.93 BTC) and the remaining $26.2 million being in the form of Ether (8804.7 ETH). Following the attack, Vee Finance’s Telegram channel suddenly burst with concerns of a potential rug pull.

A rough start for the young project

Interestingly enough, the exploit came only one day after Vee Finance boasted about its new TVL milestone of $300 million. The project also airdropped tokens, promoted 600% yields for VEE/AVAX liquidity mining pool, and more.

As some may also know, the project is rather new, with its mainnet only being around for seven days as of today, September 21st. It engages in cross-chain lending/borrowing, and it just completed private and seed funding rounds recently.

Unfortunately, it would seem that the platform was more vulnerable than anticipated, and the team had to suspend all of its smart contracts, deposit functions, and other features, just to make sure that the remaining funds in their care were safe.

This major hack came only a day after BSC’s pNetwork was hacked for $13 million in tokenized Bitcoin.

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