The VeChain Hack announced by the Foundation Medium official page. It claims that the hacker took around 1.1 billion tokens (~$6,500,000) and transferred them onto this address. The coins associated with the hacker were marked on the VeChainStats website. Anytime the hacker will transfer the coins, the website will update the labels.
VeChain Foundation is Tracing the Coins
According to the short report, VeChain is using special software to track the coins. They have sent notifications to many exchanges. The hacker already sent some funds to a list of compliant exchanges, and VeChain had notified them.
They have launched the investigation around the address. The security hole is not in computers. It is the behavior of one of the employees. He had created the buyback account without following the “Standard Procedure”. Thus, the Foundation claims that it was human error, also adding a remark about the auditing team’s inability to identify the breach while looking at the VeChain Hardware Wallet Solutions.
VeChain Hack Monitored by Hacken and VeChainStats
The Hacken research team will assist the Foundation members in tracing the stolen coins. In the same time, VCS will monitor the movement of the coins. They have helpful expertise in blockchain security and tracking coins. The team started the separate security check within the Foundation, looking at the custodian’s safe and the other virtual assets safety.
Law enforcement in Singapore know about the issue. Law cybersecurity specialists are already working to help resolve the hack. The update about the hack informs the VET token holders of the ongoing events. As soon as the Foundation gains more clarity, they will issue another update.
What Is VeChain BuyBack Address?
Back on June 30, 2019, one of the developers who’s name is Sunny announced via Twitter that the Foundation will be holding a buyback session for over 12 months. This action was created as a tool to foster the industry.
“During the AMA marathon, Sunny announced that the VeChain Foundation Steering Committee decided to conduct a VET buyback plan up to $25 million over the next twelve months! The buyback is a measure to incentivize the ecosystem for long term success.”
The buyback address is where the project supporters can send the tokens to get the dollars right from the Foundation. They were accepting the tokens on one address, which is a security breach by itself. Notably, some Reddit users claim that the exchanges will intercept the stolen coins.
We all require money sometimes, right? The fact that many of the holders were refusing to sell increased the token’s price. But after the hack, the token’s price lost more than 3% of its value. Not a big loss, but we’ll see what happens next.
Jeff Fawkes is a seasoned investment professional and a crypto analyst covering the blockchain space. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.