Vee Finance
Summary
Vee Finance is a decentralized lending and leveraged trading protocol deployed on the Avalanche blockchain that launched its mainnet on September 14, 2021. Within one week of launch, on September 20-21, 2021, an attacker exploited price oracle manipulation and a decimal calculation error in the protocol's smart contracts, draining approximately $35 million in ETH and BTC — a hack that ranks among the largest DeFi exploits on Avalanche. The protocol relaunched as V2 with improved security measures including Chainlink oracle integration, but the stolen funds were never recovered, and activity and token value have declined precipitously since the incident.
Connected Entities
1 entities- + 3 more
Timeline(14 events)
2021-05-26
CertiK completes smart contract security audit of Vee Finance. CertiK lists the project as high-risk.
2021-09-09
SlowMist completes pre-launch security audit of Vee Finance smart contracts, identifying oracle-related concerns.
2021-09-14
Vee Finance mainnet launches on Avalanche. Total value locked surpasses $300 million within days.
2021-09-20
Vee Finance team identifies abnormal transfers. Exploit begins; attacker drains 8,804.7 ETH (~$26M) and 213.93 BTC (~$9M) via oracle manipulation and decimal calculation error.
2021-09-21
Exploit confirmed publicly. VEE token crashes from $0.25 to $0.085. Protocol suspends all smart contracts. SlowMist publishes technical post-mortem. Rekt.news ranks exploit #7 on its DeFi leaderboard.
2021-09-21
Vee Finance files police report and offers $500,000 USD bounty for attacker identification. Attacker begins moving funds through CoinJoin mixer.
2021-09-24
Vee Finance publishes initial compensation plan, establishing a pool for affected users payable in AVAX, WBTC, WETH, LINK, and USDT.
2021-09-25
Case escalated to the FBI due to scale of loss and alleged links to other attacks.
2021-09-28
Vee Finance publishes formal restart plan for V2 with security improvements.
2021-10-02
Vee Finance publishes updated compensation pool and relaunch plan details. Compensation pool opens.
2021-10-04
SlowMist completes Phase 2 security audit of Vee Finance V2 contracts.
2021-12-28
Vee Finance reports 24,475 USDT deposited into compensation pool from platform revenue — a small fraction of the $35M lost.
2022-01-01
V2 relaunches with Chainlink oracle integration for money market; leveraged trading function remains suspended.
2025-01-01
VEE token trading near $0.00001 USD with 24-hour volume below $100, representing over 99.99% decline from pre-hack levels.
Decision Log
- hash: 4mJvj5aD5fUfHXvz97wVh5ituJ69BBJk8CPpYKFUF8tr
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:54 AM
last updated: 5/21/2026, 5:13:02 PM
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