Incident Overview
On 7th October 2025, an attacker exploited a known vulnerability in VeloraDEX's (formerly ParaSwap) Augustus V6 contract, stealing approximately $20,000 in USDC from a victim who had previously approved the vulnerable contract. This exploit occurred despite VeloraDEX having previously conducted a white hat operation to secure user funds and publicly warning users to revoke permissions to the Augustus V6 contract.
The vulnerability existed in the Augustus V6 contract, which VeloraDEX had previously identified and attempted to mitigate through a white hat operation that secured funds for at-risk users. Despite pausing the V6 API and conducting the protective measures, users who had granted token approvals to the Augustus V6 contract remained exposed. The attacker exploited these lingering approvals to drain USDC tokens from victims who had not revoked their permissions.
VeloraDEX had previously secured recovered funds in a Safe Wallet and issued public warnings urging users to revoke permissions, but some users either missed the warning or failed to take action. The victim in this instance lost approximately $20,000 in USDC, representing one of the missed addresses from the original white hat recovery effort where 4 addresses collectively lost $24,000.
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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 VeloraDEX, these are the critical security checks that could have prevented this incident (October 2025).
- Verify all logic paths related to Other are guarded by proper access controls and input validation
- 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 TrialSecurity Audit History
- Audit Report 1 Report
Sources & References
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