Gabagool, a team member, was found to have stolen $350,000 by Velodrome.

Even though the well-known coder received a lot of community support, after Velodrome's inquiry, Gabagool admitted to the accusations made against him.

A trading and liquidity platform called Velodrome Finance reported on August 4 that it had recovered $350,000 that had been stolen. Internal investigations revealed that a well-known team member who goes by the alias Gabagool was involved, turning the event into a bittersweet one.

On August 4, $350,000 was taken out of one of Velodrome's high-worth wallets, which were intended for operations funds like salary, before it could be transferred to the business's treasury multisig wallet. The attacker's identity was later made known through an internal investigation, enabling the business to reclaim all of the stolen goods. Even though the well-known coder received a lot of community support, after Velodrome's inquiry, Gabagool admitted to the accusations made against him.

Almost six hours after the revelation, Gabagool published a message outlining the many circumstances that prompted his theft attempt. The largest error Velodrome made was to provide over the private key of its wallet to five people, one of which was Gabagool.

Like many other investors, Gabagool suffered significant losses during the 2022 crypto meltdown. Gabagool made the impulsive decision to withdraw $350,000 in various cryptocurrencies in an effort to recover losses, only to convert it to Ether (ETH) and send it to Tornado Cash.

Investigators from Velodrome "indicated they had already identified my involvement" by the time Gabagool made the decision to refund the stolen money.

On the other hand, Velodrome acknowledged consulting with legal counsel to decide the next course of action. Velodrome will no longer allow team members to possess private keys going forward and will instead use gnosis safes for all financial transactions.

Although BlueBenx, a Brazilian cryptocurrency lending platform, also had a hack, the consequences were unmatched by Velodrome Finance. According to reports, BlueBenx stopped allowing any of its 22,000 members to withdraw money after an alleged cyberattack that stole $32 million.

Investors are losing faith because a number of cryptocurrency companies lately stopped allowing consumers to withdraw money while concealing their inability to deliver the yield returns they had previously promised.