Velodrome Accuses Former Team Member Of Stealing Funds During Recent Hack

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Velodrome, the central trading and liquidity marketplace on Optimism Foundation network, accuses a former team member of being the culprit behind the theft of $350K from the team’s wallet in August.

The platform was hacked on August 4 when one of the project’s wallets, used for operating funds and team salaries, was breached. The perpetrator escaped with $350K before the Velodrome could transfer their assets to the multi-signatory treasury.

Velodrome team members who did not have access to the wallet carried out an investigation which revealed famous crypto sleuth and former team member “Gabagool.eth” as the attacker. 

An anonymous coder operating under the guise of Gabagool rose to prominence as an on-chain detective last year when they exposed Divergence Venture’s Ribbon Finance airdrop exploit.

As a result, Velodrome has severed all ties with their former team member and stated the team is consulting legal counsel. The firm assured its users there would be no disruption in Velodrome’s activities and that users’ funds were safe.

Due to Gabagool’s reputation as a reliable crypto sleuth, the community responds with skepticism to Velodrome’s accusation. Many Twitter users share their disbelief at the news, citing that the coder would not risk the reputation they have built up with the crypto community just to steal funds, with some claiming there is more than one side to this story.   

Written by
Ayush Pande

Velodrome, the central trading and liquidity marketplace on Optimism Foundation network, accuses a former team member of being the culprit behind the theft of $350K from the team’s wallet in August.

The platform was hacked on August 4 when one of the project’s wallets, used for operating funds and team salaries, was breached. The perpetrator escaped with $350K before the Velodrome could transfer their assets to the multi-signatory treasury.

Velodrome team members who did not have access to the wallet carried out an investigation which revealed famous crypto sleuth and former team member “Gabagool.eth” as the attacker. 

An anonymous coder operating under the guise of Gabagool rose to prominence as an on-chain detective last year when they exposed Divergence Venture’s Ribbon Finance airdrop exploit.

As a result, Velodrome has severed all ties with their former team member and stated the team is consulting legal counsel. The firm assured its users there would be no disruption in Velodrome’s activities and that users’ funds were safe.

Due to Gabagool’s reputation as a reliable crypto sleuth, the community responds with skepticism to Velodrome’s accusation. Many Twitter users share their disbelief at the news, citing that the coder would not risk the reputation they have built up with the crypto community just to steal funds, with some claiming there is more than one side to this story.   

Written by
Ayush Pande