Avalanche DeFi Protocol Vee Finance Loses $35 Million in Fresh Attack, pNetwork Loses $12 Million

Amid a strong rally in the DeFi market, decentralized finance protocols have become more vulnerable to fresh attacks in the market. Decentralized finance (DeFi) platform Vee Finance reported $35 million losses in the latest exploit, just a few days after launching the mainnet on the Avalanche network.

On Sept 20 Monday, an attack took place, following which the team paused all the services on its platform. The Vee Finance team appraised the community of the events of the attack.

The team announced that a total of 8804.7 ETH and 213.93 BTC were attacked. This is equivalent to a staggering $35 million scooped by the attackers from the DeFi protocol. The Vee Finance team has been actively investigating the matter as the developer team has been dedicatedly working in the interest of the users.

Soon after which they published a report mentioning the attacker's address. "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." 

Sadly, Vee Finance is just one of many DeFi platforms to fall prey to hackers. PNetwork, a decentralized financial system that allows different blockchains to communicate, said it suffered 277 bitcoins ($12 million) after an attacker found a bug in its code.

The network's official tweeter handled posted an update yesterday saying, "We're sorry to inform the community that an attacker was able to leverage a bug in our codebase and attack pBTC on BSC, stealing 277 BTC (most of its collateral). The other bridges were not affected. All other funds in the pNetwork are safe."

Soon after, another thread that followed the tweet reassured their clients by posting, "We have identified the bug and are working on fixing it. The bridges will be re-activated as soon as it's safe to, most likely in a matter of hours."

However, pNetwork has offered an award of $1.5 million to the hacker, citing, "Finding vulnerabilities is part of the game unfortunately, but we all want DeFi ecosystem to continue growing, returning funds is a step in that direction." The award offered is nearly 13% of the funds, but no information is provided whether the attacker has responded to this offer or not.