Velodrome Claims Team Member Stole $350,000 From the Project’s Wallet
- Velodrome announced that Gabagool.eth stole the missing $350,000, the incident that happened earlier this month.
Per an announcement on Saturday, the decentralized exchange (DEX), Velodrome, revealed that an ex-team member was behind the $350,000 stolen from the project’s wallet earlier this month.
The DEX platform said an investigation of the incident revealed that an anonymous coder with the Twitter handle, Gabagool.eth, or Gabagool was the person behind the missing funds.
Velodrome Woes
Earlier this month, Velodrome announced a hack on one of its team wallets with $350,000 stolen from the project. Gabagool became famous for exposing hacker activities in the DeFi sector.
He built his reputation as one of the on-chain sleuths that did this regularly. In the announcement, Velodrome confirmed that it no longer has any relationship with Gabagool and is discussing with the legal team to determine the best way forward.
However, the DEX platform ascertained that the theft didn’t affect users’ funds. The announcement also revealed that the funds had been returned to the project team’s control.
Gabagool was one of those interviewed by the media after the incident. At that time, Gabagool said an investigation on the matter was ongoing. He also said the drained wallet contained the salaries of the project’s team.
When our team reached out to Gabagool to debunk or confirm the allegation against him by Velodrome, he didn’t respond. Velodrome Finance is the successful execution of the vested escrow version (3,3) model established by Andre Cronje (founder of Yearn finance).
The DEX is a fork of the Solidly DEX developed by Cronje. The original plan was to launch version 3,3 of Solidly DEX on the fantom network.
Instead, there was a hard fork on the Solidly DEX, resulting in the creation of Velodrome. Besides liquidity, the protocol’s design helps balance protocol emissions with fees.
Velodrome utilizes a unique voting system to achieve this purpose. Velodrome Finance is an improvement on Solidly’s shortcomings. The protocol compensates for impairment losses with LPs, and voting is conducted without bias.
As of July 2022, the total value locked on the optimism network by the Velodrome platform is over $100 million. Optimism is a top layer-2 network on the Ethereum chain. The Velodrome native token, VELO, is down 29.86 percent in the last 24 hours and trades at $0.0245.
Takeaway DEX Updates
Notably, DEX DYdX has announced a blockage of all users with any transaction history linked with the tornado cash token. On Monday, the US Treasury Department placed an outright ban on the Tornado Cash platform (a crypto mixing service).
The DEX announced that owners of the blocked accounts do not necessarily have to know the source of the funds they received. DYdX asked users who assume the DEX blocked their accounts in error to contact its compliance department.
The US Treasury Department claims that Tornado Cash is involved with some of the top hacks in the crypto space, such as the theft of $625 million from Axie Infinity’s ronin bridge.
The North Korea-funded hacker group (the Lazarus group) is usually responsible for these top hacks. Tornado Cash has processed tens of millions of dollars as its design prevents tracing funds’ sources.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
