Gamma Capitals Asset Index

Velodrome Finance Claims It Has Recovered $350,000 Stolen Funds

After experiencing theft of funds on August 4, Velodrome Finance, a liquidity and trading marketplace announced that it has recovered a total of $350,00 stolen. However, the whole scenario turned out to be a bittersweet one when the internal investigations revealed that a prominent team using the pseudonym, Gabagool, was involved.

On the said date of the theft, Velodrome has one of its high-worth wallets which is dedicated to keeping all operating funds like workers’ salaries drained. The attack drained that wallet which was holding about $350,000, just before the company could transfer the funds into its treasury multi-sig wallet.

Perpetrator Uncovered

An internal investigation that was launched as a result proved successful, and it revealed the information of the attacker. This process allowed the company to recover the whole funds, and according to the official statement from Velodrome, the Gabagool, the perpetrator, is a member of the team.

Even though most of the community members are in support of the prominent coder, the preparator pleaded guilty and owned up to the allegations made against him after the internal investigations were carried out.

Gabagool’s Confession Note

About six hours after the situation around the attack was uncovered, Gabagool released a note where he owned up to the allegations and explained the various events that motivated his action. As it stands, the biggest fault of Velodrome is to grant five individuals access to the private key of the wallet, among whom Gabagool is.

The hasty and uncalled decision of Gabagool to withdraw from the company’s wallet is owing to the huge amount of money he lost during the 2022 crypto bear market. In an attempt to recoup his losses, he converted the funds which are in various crypto assets to Ether which he sent through Tornado Cash.

According to the note released by Gabagool, the company has already uncovered his involvement before he could get a chance to return the funds to the wallet. He, however, added that he felt stupid and disappointed in himself for the actions he took, and he is currently unsure of the next step.

On the other hand, the company revealed that it is working with the legal counsel to confirm the next step in the case, and as a way of redeeming its error, the access to the wallet’s private keys has been revoked from the team members.

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