Vee Finance Loses $35 Million in an Exploit on Avalanche

Vee Finance, a decentralized finance platform, has officially confirmed its hack on Avalanche. On September 20, the hacker managed to transfer funds worth $35 million. In terms of assets, it was 8804.7 ETH (around $26 million) and 213.93 BTC (around $9 million).

According to the report, the hack didn’t affect the stablecoin. As for the hacker, the report confirms that they have not yet transferred or processed the funds. The team is working to provide more details of the incident. Further, they are working to contact the attacker to recover the assets.

Vee Finance Had Just Completed a Funding Round

A day before the exploit, the protocol posted a blog post boasting of its success. The post recorded hitting a total value locked of $300 million.

Of course, Vee Finance has been working to see such growth. It has been airdropping tokens and promoting yields of 600% for VEE/AVAX liquidity mining pools. When the protocol launched to mainnet on September 14, it aimed at bridging the gap between traditional finance and DeFi. Also, it was looking to provide its customers with more advanced digital asset management services.

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The other week, Vee Finance completed a private and seed funding round from a couple of investors. Huobi Ventures Blockchain Fund and Avalanche Asia were among the venture capital firms.

What is happening in Avalanche?

Vee Finance is not the first to get exploited this season on Avalanche. Last week, Avalanche-based Zabu Finance was hit by a hacker for $3.2 million located in a pool.

The hacker rooted the exploit in Spore’s token pool that allowed the assailant to mint over 4.5 billion of the protocol’s native token (Zabu). They then dumped the tokens into other DeFi-trade protocols, such as Pangolin and Trader Joe.

The exchange rapidly opened withdrawals to use the platform to minimize the risk of such assets. This big sell-off caused Zabu prices to reach zero. Investors hence lost a considerable amount of money.

DeFi, in general, has attracted several attacks this year as it grows in popularity. On September 19, the Binance Chain platform, pNetwork, was hacked $13 million worth of Bitcoin.

VEE Token Prices Plunge

After the attack, Vee Finance had to suspend all smart contracts and deposit functions on the platform. The reason is to guarantee the safety of the funds not yet affected by the hacker.

Its Telegram channel quickly filled with users airing their concern about a potential rug pull. The price of the protocol’s native VEE token plunged when it made the announcement. The 45% drop is from the September 21 high of $0.235 to around $0.128 today.

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On September 18, VEE hit an all-time high of $0.854. From current figures, it is down 85%.