{"id":423194,"date":"2024-06-03T10:45:44","date_gmt":"2024-06-03T09:45:44","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=423194"},"modified":"2024-06-03T12:09:14","modified_gmt":"2024-06-03T11:09:14","slug":"linea-under-scrutiny-for-unilateral-block-production-halt-amid-velocore-hack","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/linea-under-scrutiny-for-unilateral-block-production-halt-amid-velocore-hack\/","title":{"rendered":"Linea under scrutiny for unilateral block production halt amid Velocore hack"},"content":{"rendered":"<p><a href=\"https:\/\/cryptoslate.com\/coins\/ethereum\/\">Ethereum<\/a> layer-2 blockchain Linea is under fire after it revealed that it unilaterally stopped block production because Velocore, a decentralized exchange operating on its network, was hacked.<\/p>\n<p>Over the weekend, 700 ETH\u2014equivalent to over $2.6 million\u2014was moved off the <a href=\"https:\/\/cryptoslate.com\/cryptos\/layer-2\/\">layer-2<\/a> network via an unnamed third-party bridge because of the Velocore hack. As of press time, a total of <a href=\"https:\/\/velocorexyz.medium.com\/velocore-incident-post-mortem-6197020ec3e9\">$6.8 million<\/a> was lost from Volocore. Linea explained that its inability to reach the DEX team immediately prompted it to &#8220;halt the sequencer to prevent additional funds bridging out.&#8221;<\/p>\n<p>It <a href=\"https:\/\/x.com\/LineaBuild\/status\/1797283402745573837\">added<\/a>:<\/p>\n<blockquote><p>&#8220;The sequencer was paused from block 5081800 and 5081801. During this pause, we gave the Velocore team time to support their efforts of triaging the vulnerability. We also censored the hacker's addresses. This significantly reduced the ecosystem impact on Linea users.&#8221;<\/p><\/blockquote>\n<p>Linea justified its decision by pointing out that the hacker &#8220;was beginning to sell a large sum of tokens into ETH. This would have created other issues in the ecosystem for users beyond the liquidity pool-draining exploit.&#8221;<\/p>\n<h2>Community slams Linea<\/h2>\n<p>The crypto community has strongly criticized Linea's decision to halt block production, arguing that it violated the ethics of the emerging industry.<\/p>\n<p>While acknowledging the rationale behind the move, Mert Mumtaz, the CEO of Helius Labs and a vocal supporter of <a href=\"https:\/\/cryptoslate.com\/coins\/solana\/\">Solana<\/a>, expressed apprehensions about its long-term impact. He <a href=\"https:\/\/x.com\/0xMert_\/status\/1797285798179663937?t=H8nJsfUIbYddmf5E_23i-w&s=19\">said<\/a>:<\/p>\n<blockquote><p>&#8220;Consensys' L2 unilaterally turned off the chain yesterday Reasonable given the circumstances but also a clear sign that this is not crypto.&#8221;<\/p><\/blockquote>\n<p>Echoing this sentiment, Alex Gluchowski, CEO of <a href=\"https:\/\/cryptoslate.com\/companies\/matter-labs\/\">Matter Labs<\/a>, emphasized the critical importance of decentralization for all sequencers. He urged all layer-2 solutions to prioritize integrating decentralization into their platforms.<\/p>\n<blockquote><p>&#8220;Decentralizing the sequencer isn\u2019t optional. Every serious L2 stack must race to do this first,&#8221; Gluchowski <a href=\"https:\/\/x.com\/gluk64\/status\/1797298833824624864\">remarked<\/a>.<\/p><\/blockquote>\n<h2>Decentralization goals<\/h2>\n<p>Meanwhile, Linea said it remains committed to decentralizing its network and sequencer to prevent a recurrence of this event. It stated:<\/p>\n<blockquote>\n<p class=\"s3\">&#8220;Linea's goal is to decentralize our network &#8211; including the sequencer. When our network matures to a decentralized, censorship-resistant environment, Linea's team will no longer have the ability to halt block production and censor addresses &#8211; this is a primary goal of our network.&#8221;<\/p>\n<\/blockquote>\n<p>The <a href=\"https:\/\/cryptoslate.com\/consensys-launches-linea-mainnet-alpha-launch\/\">Consensys-backed blockchain<\/a> also pointed out that most rival networks still rely on centralized technical operations to protect ecosystem participants. However, it added that its &#8220;core value [remains] a permissionless, censorship-resistant environment.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ethereum layer-2 blockchain Linea is under fire after it revealed that it unilaterally stopped block production because Velocore, a decentralized exchange operating on its network, was hacked. Over the weekend, 700 ETH\u2014equivalent to over $2.6 million\u2014was moved off the layer-2 network via an unnamed third-party bridge because of the Velocore hack. As of press time, [&hellip;]<\/p>\n","protected":false},"author":720,"featured_media":423206,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77968,16041,37],"tags":[72190,77294,79315],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Linea under scrutiny for unilateral block production halt amid Velocore hack<\/title>\n<meta name=\"description\" content=\"Ethereum layer-2 blockchain network Linea&#039;s hack response sparks decentralization debate within the crypto community.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/linea-under-scrutiny-for-unilateral-block-production-halt-amid-velocore-hack\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Linea under scrutiny for unilateral block production halt amid Velocore hack\" \/>\n<meta property=\"og:description\" content=\"Ethereum layer-2 blockchain network Linea&#039;s hack response sparks decentralization debate within the crypto community.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/linea-under-scrutiny-for-unilateral-block-production-halt-amid-velocore-hack\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2024-06-03T09:45:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-06-03T11:09:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/06\/hacked.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oluwapelumi Adejumo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oluwapelumi Adejumo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/linea-under-scrutiny-for-unilateral-block-production-halt-amid-velocore-hack\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/linea-under-scrutiny-for-unilateral-block-production-halt-amid-velocore-hack\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#person\",\"name\":\"Oluwapelumi Adejumo\",\"url\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"caption\":\"Oluwapelumi Adejumo\"},\"jobTitle\":\"Senior Reporter\",\"description\":\"Oluwapelumi values Bitcoin's potential. 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