A liquidity and trading marketplace “Velodrome Finance” declared the redeeming of up to $350,000 worth of funds that were stolen on 4th August. Nonetheless, the incident became touching when the internal analysis brought to the front that a famous team participant (known by the pseudonym “Gabagool”) was involved.
Velodrome Redeems Stolen Funds from Its Team Participant
On 4th August, 1 of the high-worth wallets of Velodrome – specified for running funds like salaries – witnessed drainage of $350,000 in advance of getting it transacted to the treasury multisig wallet of the firm.
A later internal investigation disclosed the identity of the attacker, due to which the platform was able to redeem the complete looted amount. The official statement from Velodrome revealed that they were extremely disappointed after knowing that the attacker was none other than their team member.
Though several community participants provided their support for the well-known coder, the accusations made against Gabagood were accepted by the person after the investigation of Velodrome. A note was released by Gabagool within 6 hours of the investigation disclosing the incidents that were responsible for compelling him to carry out the theft. The chief mistake of Velodrome was to make 5 individuals (including Gabagool) the owners of the private key to its wallet.
“Gabagool” Ashamed of His Activities
Just like several other investors, Gabagool lost huge amounts of funds during the crypto crash of 2022. While endeavoring to recover the losses, a hasty decision was made by Gabagool to withdraw approximately $350,000 in diverse cryptocurrencies just to transform it to ETH and get it transacted to Tornado Cash.
Till the time Gabagool determined to return the funds, the investigators of Velodrome had already identified his involvement.
The attacker stated in the end that his action was most unwise and he was much ashamed with no idea regarding what to do next in legal terms. On the contrary, Velodrome revealed operating with its legal counsel for the determination of the next moves. Moving ahead, Velodrome has concluded revoking the private keys’ ownership from the group participants. It mentioned to rather organize gnosis safes to carry out the entirety of the monetary activities.
Apart from that, BlueBenx (the entity that offers crypto lending services in Brazil) also underwent a hack of almost $32M. Nevertheless– contrary to Velodrome Finance – the venue obstructed the withdrawals from its clients and fired a great number of employees without giving any explanation.