VeChain Foundation Hacked for $6.5 Million Worth of VET Tokens

News / 14.12.2019

The crypto industry continues to face numerous security threats, although its underlying blockchain technology is known to provide secure transactions. Crypto derivatives have recently been facing attacks and a recent one of them is the VeChain Foundation.

Just yesterday, VeChain’s buyback address was compromised, which led to 1.1 billion VET tokens worth $6.5 million being stolen. This security bridge is likely to be caused by an internal misconduct, according to the report.

Information from the foundation implies that, the compromised wallet was created without obeying the organization’s standard procedures. The foundation claims it was missed by their auditing team due to human error.

In the organization’s September 2019 financial report, it disclosed that, it controlled 27.3% of the total token supply. This hack represents over 4.6% of the foundation’s treasury and also accounts for 1.3% of VeChain’s total supply.

The foundation has reported the incident to law enforcement in Singapore and to various exchanges. It particularly instructed exchanges to blacklist the addresses of hackers that had sent stolen funds to them.

The assistance of Hacken, a cyber security consultancy that has specialized in crypto, and vechainstats.com have also been enlisted. The foundation believes that the expertise of the aforementioned, in blockchain and cybersecurity, can help monitor and contain the situation.

Featured Image Courtesy of Shutterstock. Source: CryptoPress News.

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Dacosta Osei-Tutu, a first degree holder in Nursing, who couples his Nursing career with blockchain blogging, has a great passion for the blockchain technology and aims to play a vital role in applying this revolutionary technology to disrupt the healthcare system in Africa.