Another Defi Hack of 2021: Vee Finance Losses $35 Million in the Crypto Sector

Another Defi Hack of 2021: Vee Finance Losses $35 Million in the Crypto Sector
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Vee Finance, an Avalanche-based Defi protocol, suffered a loss of $35 million in BTC and ETH. The team monitored numerous abnormal transfers and later found that a total of 213.93 BTC and 8804 ETH were attacked, which was worth more than 35 million USD.

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. Thanks!

~Twitter (@VeeFinance) 

What do we know about Vee Finance?

It is a lending protocol based on Avalanche blockchain, and it offers fixed and flexible returns on crypto deposits. Vee finance potentially aims to bridge the gap between flexible/ fixed returns and traditional banking.

The protocol provides the suppliers, during lending, with more token options and also supports NFT tokens. The borrowers on the platform get an embedded arbitrage mechanism for precise profit-taking during the upward cycle of the market and witness the stability in the returns.

What is the status of the current hack on the platform?

Vee finance, on September 20th, monitored many abnormal transfers, and after investigation, it was found out that more than $35 million were attacked in BTC and ETH. Later, the team suspended the borrow and deposit functions for ensuring the safety of other assets.

It was found that the stable coin sector wasn’t affected during the attack, i.e., DAI.e, USDT.e, and USDC.e assets are safe as of now. So, users can withdraw and repay from the stable coin space, but the borrow and supply functions are yet not available.

Also, the team has suspended all the pending orders, and no new orders can be created for trading.

The team is actively communicating with the attacker

The Vee finance team has proactively communicated to the attacker, but the hacker hasn't yet processed the attacked assets. Also, they are working to locate the attacker to facilitate the recovery of the attacked cryptos.

They have contacted the attacker for negotiating a solution and are also monitoring the attacked address.

Closing thoughts

Defi space is exceptionally vulnerable to cyberattacks, and the saying is proved again by this attack on Vee Finance. A few days ago, the network declared that its TVL had surpassed $300 million, and now, it faced the hack. Who knows that the attacker was waiting for that news only.

Jokes apart, it is not wrong to say that 2021 is witnessing a massive sum of losses in the Defi sector, and we sincerely need to think about securing these platforms. For the users of the Vee platform, it is advisable to suspend all their operations until the investigation is completed.