Avalanche-based Vee Finance gets exploited by attackers for $35 million

  • The Vee Finance team has suspended platform contracts along with the deposit and borrow functions.
  • The attack happened within two days of Vee Finance announcing a $300 million total-value-locked (TVL).

Avalanche-based decentralized finance (DeFi) platform Vee Finance has been the latest victim of the attacks happening in the DeFi space. The attack took place on Monday, September 20, Following which the team paused all the services on its platform.

The Vee Finance team has already announced an investigation into this matter. Furthermore, the DeFi platform recently published a report mentioning the attacker’s address. The DeFi platform noted:

The VEE Finance team has suspended the platform contracts to ensure the safety of more users’ assets, and the VEE Finance platform has now suspended the deposit and borrow function.

Currently, according to address monitoring, the attacker has not yet transferred or processed the stolen assets further. The VEE team is actively working to further clarify the incident and will continue to try to contact the attacker to recover the assets.

In further investigation, the team announced that a total of 8804.7 ETH and 213.93 BTC were attacked. Thus, the total estimated amount scooped by the attackers stands at a staggering $35 million.

Vee Finance said that its actively investigating the matter and will work towards protecting the interest of Vee Finance users.

The rapid growth of Vee Finance and Avalanche platform

The attack happened just a day after boasting about its total-value-locked (TVL) moving past $300 million. The APR yield for the VEE-AVAX and VEE-USD.e pools surged to a staggering 600 percent.

Besides, the platform also announced an additional airdrop to its users for depositing on Vee.Finance. However, these rewards shall be available once the TVL on the platform surpasses $1 billion.

This Avalanche-based DeFi lending platform serves users of traditional and crypto finance alike. The platform seeks to bridge the gap between traditional and crypto finance markets. This DeFi platform provides users multiple facilities like deposits, loans, as well as long and short positions along with other functions.

The recent attack on Vee Finance can bring some scepticism among the users. Attacks on DeFi platforms are getting more common as the sector gains more market prominence. In the last month of August, the popular DeFi lending platform CREAM Finance suffered a $25 million flash loan attack.

Read More: DeFi Lending platform CREAM Finance hit with $25 million flash loan attack

On the other hand, the Avalanche blockchain has received massive popularity in recent times. The total number of Defi projects on Avalanche has also surged tremendously. Last week, Avalanche raised a staggering $230 million to fund decentralized finance (DeFi) innovation taking place on its platform.

As a result of these developments, the AVAX token has been one of the top-performing altcoins. The AVAX price touched an all-time high of $68 last week while clocking nearly 500 percent gains in two months. Amid the broader market correction, AVAX has also come under press and is trading 9 percent down at a price of $58.93.

About Author

Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fictions novels and sometimes explores his culinary skills.

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