DeFi Protocol Vee Finance Hacked For Over $35M, Falls By 50%

Decentralized finance (DeFi) protocol Vee Finance VEE/USD saw hackers siphon out over $35 million in digital assets from its wallets just a few days after launching on the Avalanche AVAX/USD blockchain.

What Happened: In a Tuesday announcement, Vee Finance reported over $35 million in losses caused by a cyberattack after pausing services following the exploit on Monday as its team started conducting internal investigations.

The losses are 8,804 Ethereum ETH/USD and around 214 Bitcoin BTC/USD.

Vee Finance published the address where the hacker sent the stolen assets and suspended its smart contracts alongside the deposit and borrow functions to prevent further losses.

The project's team did not clarify how the attack was carried out but promised to be "actively working to further clarify the incident" and said it "will continue to try to contact the attacker to recover the assets."

Vee Finance is a DeFi lending platform that supports multiple mining mechanisms, which includes liquidity mining, transaction mining and leveraged mining. It launched Sept. 14. After integrating Chainlink's LINK/USD asset price feeds, the protocol was able to reach over $300 million of total value locked on the platform as of Sunday.

Price Action: According to CoinMarketCap data, Vee Finance is trading at $0.08917 after losing 56.7% of its value over the last 24 hours.