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Velodrome Recovers $350K Stolen in Hack by Team Member

UTC by Mercy Tukiya Mutanya · 2 min read
Velodrome Recovers $350K Stolen in Hack by Team Member
Photo: Unsplash

The exchange revealed that it had severed ties with the hacker and was seeking legal advice on the next course of action.

Decentralised crypto exchange Velodrome has revealed that a team member was responsible for the $350,000 hack that took place earlier this month. The DEX stated that a team member identified by the alias “Gabagool” was behind the attack.

Details of the matter are that on August 4, a Velodrome wallet dedicated to operating costs such as salaries was drained of $350,000. The hacker had intercepted the funds before they could be transferred to the DEX’s treasury multisig wallet. An internal investigation revealed the hacker’s identity, resulting in the recovery of the stolen funds. Gabagool is named in Velodrome’s official statement on the matter:

“Much to our disappointment, we learned the attacker was a fellow team member Gabagool.”

The exchange revealed that it had since severed ties with the hacker and was seeking legal advice on the next course of action. Users of the platform were assured that their funds had not been affected by the hack.

An update from Velodrome on our investigation into the team wallet exploit. pic.twitter.com/sz1ePStcT0

— Velodrome (🚴,🚴) (@VelodromeFi) August 13, 2022

Known on Twitter by the handle Gabagool.eth, the coder has gained an online following as an on-chain investigator exposing fraudulent activities in the world of decentralised finance. Following the announcement, several members of the online community rallied behind Gabagool. However, after the official statement, Gabagool owned up to his actions. He stated that Velodrome had made the mistake of giving its private key to five team members, including him. Having lost money during the crypto crash like many investors, Gabagool withdrew $350,000 in various cryptocurrencies which he converted to Ether and sent to Tornado Cash.

“I did this in a pathetic attempt to solve my own problem, to get out of a trap of my own making. I thought I could make the 56k back and return all of the funds, which was delusional,” Gabagool explained in a note posted on Twitter. The note ended, “Not much else to say. I’m extremely stupid, incredibly disappointed in myself and (frankly) unsure about what next, legally speaking.”

Velodrome has reportedly since revoked ownership of private keys from members of its team and set up gnosis safes.

Altcoin News, Cryptocurrency news, Cybersecurity News, News, Technology News
Mercy Tukiya Mutanya

Mercy Mutanya is a Tech enthusiast, Digital Marketer, Writer and IT Business Management Student. She enjoys reading, writing, doing crosswords and binge-watching her favourite TV series.

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