September 26, 2022

Velodrome accuses former security specialist of stealing $350,000

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Velodrome accuses former security specialist of stealing $350,000

Cryptocurrency exchange Velodrome, which suffered a hack in August, said its former blockchain developer and cybersecurity specialist was responsible for the incident.

Decentralized exchange (DEX) Velodrome during the investigation of the hack revealed that assets worth $ 350,000 were stolen by an anonymous developer known as "Gabagool".

Gabagool gained popularity in the crypto communitydue to the fact that, as a member of the blockchain security expert group, he exposed the activities of scammers in the DeFi industry many times. Gabagool has yet to comment on the charges against him.

“The Velodrome team terminated the contract with Gabagool and is working with legal counsel to determine the next steps to bring him to justice,” the exchange said.

Immediately after the hack, Gabagool stated that the teaminvestigates the incident and the target wallet holds the team's personal payroll funds. Velodrome assured users that their assets were not affected and were completely safe.

The Velodrome project is an implementation of the escrow model proposed by Yearn.Finance creator Andre Cronje. In July, the total value of the platform exceeded $100 million.

Recall that recently the US Securities and Exchange Commission (SEC) accused 11 people of creating a $300 million cryptocurrency pyramid.