Avalanche-Based DeFi Lender Vee Finance Hacked for $36M in BTC and ETH

A contract address belonging to the DeFi lending platform Vee finance has been exploited with the perpetrator swiping 8,800 ETH and 214 BTC. The attacker has not moved the funds yet, as Vee’s team claiming they have initiated contact to resolve the incident.

• The protocol announced hours ago that it had halted all services as it became a victim of a security breach. The subsequent update provided the wallet the perpetrator used to transfer funds out of Vee’s address.
• According to Etherscan, which has already marked the address as being involved in the Vee Finance hack, it currently holds 8,804 ETH and 214 Wrapped BTC (WBTC). With today’s prices, this amount has a USD value of over $36 million.
• Vee explained that the attack transpired on a pending contract, and all assets in the stablecoin sector were not affected. Meaning, USDT.e, USDC.e, and DAI.e holdings are safe.
• However, the protocol has halted all of its services to “protect the safety of more users’ assets” and failed to provide a precise timeframe when they will be resumed.
• The attacker has not yet transferred the stolen fund. As such, the team behind the DeFi protocol is trying to “actively” deal with the situation and has reached out to the hacker to find a solution.

• “At the same time, we are working with contract auditors and exchanges in the industry to locate the attacker and assist in recovering the assets.”

• It’s worth noting that this security breach comes just a week after the DeFi lander officially launched its mainnet on the Avalanche blockchain. In just 12 hours, the protocol’s total value locked reportedly grew by $100 million to over $300 million.
• This is the second hack against a decentralized finance project since the start of the week. As CryptoPotato reported yesterday, pNetwork also fell victim, with over $12 million in various cryptocurrencies stolen.