Velodrome recovers $350K stolen funds from team member Gabagool

Gabagool, like many other investors, lost a lot of money during the 2022 cryptocurrency meltdown.

Velodrome recovers $350K stolen funds from team member Gabagool
BlueBenx, a Brazilian crypto loan platform, was also hacked, but what happened afterwards was incomparable to Velodrome Finance

On August 4, Velodrome Finance, a trading and liquidity platform, claimed the recovery of $350,000 stolen, as reported by Cointelegraph.

However, the event became bittersweet as internal investigations revealed the involvement of a prominent team member who goes by the alias Gabagool.

On August 4, one of Velodrome’s high-value wallets — which are used for operations funds like as salary — was drained of $350,000 before it could be transferred to the company’s treasury multisig wallet. Following an internal inquiry, the attacker’s identity was discovered, allowing the company to reclaim the whole amount. The official announcement from Velodrome stated,”Much to our disappointment, we learned the attacker was a fellow team member Gabagool.”

While many members of the community rallied in support of the popular coder, Gabagool admitted to the claims levelled against him following Velodrome’s investigation. Gabagool released a note about six hours into the revelation, detailing the events that drove him to try thievery. Velodrome’s worst blunder was entrusting the private key to five individuals, including Gabagool, Cointelegraph noted.

Gabagool, like many other investors, lost a lot of money during the 2022 cryptocurrency meltdown. Gabagool made the hurried decision to withdraw $350,000 in various cryptocurrencies, only to convert it to Ether (ETH) and transfer it to Tornado Cash in an attempt to recoup losses.

BlueBenx, a Brazilian crypto loan platform, was also hacked, but what happened afterwards was incomparable to Velodrome Finance. Following an alleged hack that drained $32 million, BlueBenx reportedly barred all of its 22,000 users from withdrawing their assets.

(With insights from Cointelegraph)

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