Vee Finance, a decentralized finance (DeFi) platform based on Avalanche, announced on September 21st, 2021 that it had suffered from a hack. This incident saw around 213 bitcoins and 8.804 ether siphoned out of their system. The defi platform contracts have already been suspended by their team and they stressed that none of the stablecoins have been affected by the said attack. In recent times, the Avalanche (AVAX) blockchain has gained significant popularity and the network managed to attract the attention of a number of DeFi applications. Some of these include Osiris, Shroom Finance, Lydia Finance, Trader Joe and Benqi.fi.
Another DeFi platform that appears to have gathered a number of coins as well as users is Vee Finance, which has added to the total value locked (TVL) of the platform. However, the team explained on 21st September that the project had undergone an ‘attack’ and an incident report was shared via Twitter with the Vee Finance Community. The tweet disclosed that the Vee Finance team had decided to suspend the platform contracts in order to ensure the safety of the assets of its other users and they had also suspended the deposit and borrow function.
The disclosure further highlighted that the Stablecoin section hadn’t been affected in the attack. The Vee Finance team mentioned in the incident report that around 213.93 BTC and 8,804.7 ETH had been attacked. This loss was around $35.9 million at the time of writing, taking into account the current exchange rates of bitcoin and ether. The Vee Finance team said that investigation showed that an etherscan address was used by the attacker for launching the attack and the stolen assets were also collected in the address.
The operators of the DeFi project insisted that stablecoins remained unaffected by the attack. They said that they were monitoring the address and it showed that the stolen assets had not been transferred or processed further by the attacker. The Vee team is working actively to clarify the incident further and they said they would attempt to contact the hacker for recovering the assets. The attack on the Vee Finance network follows an attack that was conducted on September 20th against the Pnetwork protocol as well. This resulted in the loss of around 277 Bitcoins through the Binance Smart Chain (BSC).
The Pnetwork team had also offered the hacker a bounty in exchange for the funds that had been stolen but hadn’t received a response as yet. As far as the Avalanche network is concerned, it saw its first major attack in terms of DeFi around six days ago. This was when Zabu Finance had suffered from a loss of $3.2 million because of a hack. The Spore Token platform of the protocol had been exploited by the Zabu Finance hacker and he had minted around 4.5 billion zabu and had withdrawn the coins to a secret wallet. Likewise, the Pnetwork attacker had also exploited a bug in its codebase in order to gain access and steal the funds.