DeFi Platform Vee Finance Exploited for $35M on Avalanche Blockchain

A decentralized finance (DeFi) exchange Vee Finance suffered the loss of $35million. The DeFi platform recently launched its mainnet on Avalanche, a DeFi exchange last week. The loss came after an attack was launched on the Avalanche platform.

Vee Finance opened up on the incident by saying that the company suspended its operations on September 2oth, following the detection of suspicious activities. The company also confirmed that an attack was made on that evening caused the loss of $35 million. The company has lost 8,804 Ether (ETH) and around 214 Bitcoin (BTC).

How the company’s officials have said that the hacker has collected the stolen token from one address after exploiting the VEE Finance trade contract address. As of this writing, Vee Finance has suspended all of its operations on Avalanche, including the trading services as well.

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Vee Finance has not shared the details about how the attack being launched and what were the possible loopholes. The company’s official statement said that the officials are further investigating the incident to have a clear idea about what happened. Moreover, the firm is also trying to get in touch with the hacker to recover the assets being carried away.

The company further added that the officials are handling this scenario on a priority basis with a serious attitude.  The company is committed to ensuring the safety of users.

Vee Finance is a DeFi based financial platform focused on supporting numerous mining systems including liquidity mining, exchange mining, and utilized mining. The stage authoritatively dispatched its mainnet on Avalanche on Sept. 14 close by a liquidity mining dispatch.

For the security of the assets, the company installed an oracle network solution.  However, the company locked its platform carrying assets worth over $300 million.

In recent times it was monitored that a relatively higher number of hackers were targeting the Avalanche exchange. Vee Finance is not the only DeFi backed company operating on Avalanche Blockchain and suffered losses. In a series of hacking attempts, another DeFi backed company Zabu Finance reportedly lost the sum of $3.2 million. As the result, the Zabu tokens plummet to zero.

These outcomes have also negatively affected Avalanche’s native token, AVAX. AVAX which touched its highest point of $75 on Sept. 18, is now trading at $61.79, down about 3% over the past 24 hours, following these issues.

This series of hacking attacks has once more raised the question of the security protocols being adopted by the exchanges. The legal experts have also said that these incidents can be proven as an eye-opener for many institutional investors who are actively engaged with the crypto market over launching their digital currencies and services.