VeChain Foundation BuyBack Wallet Hacked, $6.6 Million in VET Stolen, Investigation Underway

A recent attack on the VeChain Foundation wallets has left the platform 1.1 billion VET tokens lighter than they started their day with. What is the platform doing to rectify the situation? What progress have they made?

  • Hacker stole 1.1 billion VET tokens and put them into a personal account.
  • VeChain has requested that exchanges freeze the funds if they see any transactions involving the hacker’s wallet.

Hackers have continually gone after the cryptocurrency industry, making many cryptocurrency opponents concerned over the possible attacks that can be inflicted upon exchanges and online wallets. On Friday, December 13th, as if to commemorate the superstitious day, a hacker infiltrated the buyback wallet launched by VeChain Foundation.

The identity of the hacker is still unknown, but an announcement on the official VeChain Foundation’s blog states that the total number of VET tokens stolen is 1.1 billion, which is about $6.6 million in value. The tokens were moved to a personal wallet (0xD802A148f38aBa4759879c33E8d04deb00cFB92b), which VeChainStats has already tagged, along with any associated addresses. If the funds are sent from the original address, VeChain will know.

Presently, VeChain is watching the transfer of the tokens with real-time data, and they’ve already taken multiple steps to try and reduce the further impact of the situation. According to the announcement, VeChain has:

  • Notified other exchanges to watch for the funds coming across their platform, requesting that they freeze the funds if found.
  • Launched an investigation in to “determine motive, method, and data flow” for the attack
  • Recruited Hacken and its community to help monitor and contain the circumstances
  • Established a security check with other cryptocurrency assets that VeChain lists.
  • Reported the attack to Singapore’s local law enforcement.

The VeChain Foundation stated that it would continue to update on the situation as new knowledge is gained. Reports from The Block indicate that the company believes the hacking to be,

“due to misconduct of one of the team members within our finance team, who have created the buyback account without thoroughly obeying The Standard Procedure approved by the Foundation, and our auditing team did not pick up this misconduct, due to human error.”

VeChain, a blockchain-based lending platform, was established in Singapore in 2015, offering the VeChain Token (VET) and the VeThor Token (VTHO). VET is used for network-based payments, while VTHO is used in smart contracts and blockchain applications.

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Krystle M
Krystle is an American cryptocurrency blogger that wants to see the future of crypto and blockchain technology evolve. She has been writing about cryptocurrency for about a year, with a special interest in blockchain technology and regulatory measures around the world. While away from writing and learning about the changes in the cryptocurrency industry, she likes to indulge in science fiction novels and further her experience in playing both guitar and piano.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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