Vee Finance Hit for $35M in Second Major Exploit on Avalanche

Decentralized finance (DeFi) platform Vee Finance has been hit for an exploit of around $35 million in the second major attack of an Avalanche platform.

The platform was attacked for a total of 8804.7 ETH (around $26 million) and 213.93 BTC (around $9 million) on Sept. 20, Vee Finance announced Tuesday, adding that the stablecoin section was not affected by the attack.
Vee Finance also highlighted the address through which the attack was launched and where the stolen assets remain collected for the time being.
Details of the nature of the attack remain scant, though Vee Finance subsequently published a tweet addressing the attacker directly. “We’re willing to launch a bounty program for the bug you identified. Please connect us via email or other contact you prefer,” it said.
Vee had announced Saturday that total value locked on its platform had surpassed $300 million.
In the wake of the exploit, the value of native token VEE tanked from over $0.25 to $0.085, according to CoinGecko. At the time of writing, its price had recovered somewhat to nearly $0.11.
The exploit follows a $3.2 million hack of Avalanche-based DeFi protocol Zabu Finance earlier this month, thought by analytics provider DeFiprime to be the “first big exploit” on the Avalanche blockchain.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.

Follow @JamieCrawleyCD on Twitter

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.