Velocore, a decentralized exchange (DEX) protocol operating on zkSync and Linea, faced a significant security breach resulting in approximately $10 million in losses for its users. Following the breach, the Velocore platform took immediate action by launching an investigation to address the exploit and implementing measures to freeze the stolen funds.

The malicious actor behind the hack successfully transferred a portion of the stolen Ethereum (ETH) to the Ethereum mainnet, complicating the recovery efforts. Velocore's response included the establishment of an 'on-chain negotiation process' to mitigate the impact of the hack and track the movement of the stolen assets.

In response to the security incident, Velocore issued an official statement regarding the exploit, revealing plans for a post-mortem analysis to identify the vulnerabilities exploited. The platform assured users that Velocore on the Telos mainnet remained unaffected by the breach.

Initial reports of the hack surfaced through Chinese crypto reporter Colin Wu's Wu Blockchain page on X, further amplified by crypto commentator MartyParty's reposting of the incident. Velocore communicated emergency updates to its users, emphasizing the severity of the breach and the ongoing efforts to recover the stolen funds.

The incident, which has been widely covered in the cryptocurrency community, highlights the importance of robust security measures and continuous vigilance in the decentralized finance (DeFi) space.