$130 million pulled out of AVAX cross-chain bridge after two exploits
- Following the attack on Zabu Finance, DeFi platform Vee Finance was attacked.
- Avalanche's native token AVAX and Vee Finance's VEE plunged.
- VEE posted 40% losses in the past 24 hours.
Avalanche network has suffered another exploit, wiping out millions from its total value locked, which is considered equivalent to market capitalization for decentralized networks.
$35 million lost in attack on Vee Finance, marking the second exploit on the Avalanche network
A layer one proof-of-stake blockchain, Avalanche network noted a massive spike in total value locked over the past few weeks. The network's native asset AVAX rallied in response to the rising demand.
The layer-one blockchain network was victim to two recent exploits, draining Zabu Finance and Vee Finance of a total of $130 million. Zabu Finance was the first decentralized finance protocol to suffer an exploit on Avalanche. The September 12 attack amounted to $3.2 million, and the DeFi app has hashed out a plan to compensate pre-hack holders.
We've been exploited today. What happened?
— Zabu Finance (@zabufinance) September 12, 2021
Everything was from a Pool of $SPORE Token -> https://t.co/D12H7uB5pD
Spore has Transfer Tax so that the attacker used the same mechanism with attacks explained on https://t.co/vXkCKPKBIz and https://t.co/SZiss6IC3R)
Vee Finance, a lending protocol platform, lost 8804.7 ETH and 213.93 BTC, amounting to $35 million. The platform is yet to hash out details of the hack.
Vee Finance has addressed the hacker in a public tweet,
We're willing to launch a bounty program for the bug you identified. Please connect us via email or other contact you prefer.
Dear Mr/Ms 0x**95BA,
— vee.finance (@VeeFinance) September 21, 2021
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.https://t.co/24R5XuSDDS pic.twitter.com/HwSNRi838g
On Saturday, Vee Finance's total value locked crossed $300 million before the attack. The price of the platform's native token VEE plunged over 40% within a single day.
The launch of Avalanches's $180 million incentive program attracting dApps to its network garnered the attention of several developers. Only $5 million in incentives have been unlocked, and the network is now faced with the challenge of securing dApps from future exploits.
The recent incidents have wiped $130 million from Avalanche network's TVL, and native token AVAX is trading 15% below its 7-day peak of $75. AVAX offered the highest risk-adjusted returns to traders last week, and analysts continue buying in anticipation of a second leg up.
Zhi Ko, the co-founder of Solstarter.org, shared in a recent tweet that he has bought Avalanche network's native asset.
Averaged a bit into some blue chip alt positions.
— Zhi Ko (@NekozTek) September 20, 2021
Nothing crazy just some spot buys on. No leverage longs yet.
- $AVAX
- $DOT
- $FTT
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
