Incident Overview
A malicious smart contract was deployed to interact with one of the protocol smart contracts, leading to the withdrawal of funds.
The attacker deployed a smart contract with malicious logic that interacted with one of the protocol smart contracts. Both contracts are unverified. The funds were then withdrawn through a series of transactions.
The stolen WBTC and WETH were bridged to Ethereum and are still held on the attacker's address.
The attacker's address:
https://cchain.explorer.avax.network/address/0xeeeE458C…0595BA/transactions
The contract behind the attack:
https://cchain.explorer.avax.network/address/0x490D25A3…E70B82/transactions
The list of transactions where the funds were withdrawn:
https://cchain.explorer.avax.network/address/0x490D25A3…E70B82/token-transfers
The Ethereum address where the stolen WBTC and WETH are held:
https://etherscan.io/address/0xeeee458c…0595ba
Incident Report
Protocol Information
What the Attacker Needed to Succeed
Understanding the prerequisites for this type of attack helps auditors identify protocols that are most at risk and helps developers build better defenses.
What Auditors Should Check
If you're auditing a protocol with similar architecture to Vee Finance, these are the critical security checks that could have prevented this incident (September 2021).
- Verify all logic paths related to Flashloan Price Oracle Attack / Other are guarded by proper access controls and input validation - see the Flash Loans Attacks attack class for patterns
- Audit oracle price feeds for manipulation risks - ensure time-weighted average prices (TWAPs) or multi-source aggregators are used, not spot prices
- Review privileged functions (owner, admin, governance) for potential abuse vectors - centralization risks should be documented and bounded with timelocks or multi-sigs
Master these auditing techniques with hands-on labs and real exploit scenarios in the Smart Contract Hacking course.
Free TrialRelated Attack Classes
The technique used in this hack maps to these vulnerability classes in our security curriculum:
Sources & References
Learn to Prevent the Next Vee Finance
The Vee Finance hack is one of many attacks that skilled auditors are trained to detect before deployment. Master real exploit patterns and defense techniques with hands-on Web3 security training.