Velodrome, Aerodrome Alert Users — 'We're Compromised.' More Than $70,000 Stolen

Decentralized trading platforms Velodrome and Aerodrome have alerted users about security breaches.

What Happened: Both exchanges issued warnings Wednesday, urging users to refrain from using either website "for the time being."

"Our front end is currently compromised," Velodrome's team stated, adding that an investigation is taking place.

Aerodrome issued a similar statement.

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Why It Matters: On-chain analyst ZachXBT observed that over $70,000 had been moved to two distinct addresses, presumably stolen during the attack.

However, there hasn't been a formal disclosure regarding the effect of this breach on user assets.

Velodrome, the second-largest decentralized exchange on OP Mainnet (formerly Optimism) OP/USD, manages over $139 million in user funds.

Aerodrome, leading on Base by total value locked, manages more than $63 million.

A breach involving a domain name system (DNS) attack, where attackers hijack the official website URLs, reportedly occurred.

In such cases, perpetrators redirect visitors to a fraudulent site with a harmful contract, aiming to pilfer user funds.