VeChain Foundation Loses $6.5 Million Worth of VET Tokens in Cyber-attack

News / 14.12.2019

Blockchain technology is famed for the security it provides in facilitating secure transactions. The praised security level has increased the number of threats facing the crypto industry as people try to breach the technology. These threats are now becoming a reality to crypto derivatives due to the numerous attacks they are facing. Recently, one of them, the  VeChain Foundation, was attacked.

Just yesterday, VeChain’s buyback address was compromised, which led to the loss of 1.1 billion VET tokens worth $6.5 million.  According to the firm’s report, this security breach is likely to have occurred due to internal misconduct.

Information from the foundation implies that the compromised wallet’s creation was contrary to its standard procedures. The foundation claims that their auditing team missed the misconduct due to human error.

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

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

Hacken’s assistance, a cybersecurity consultancy specialized in crypto, and vechainstats.com have also been enlisted. The foundation believes that those mentioned earlier, with their expertise in blockchain and cybersecurity, can help monitor and contain the situation.

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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.