VeChain Loses $6.6M in VET Tokens to Hacker in Attack on Buyback Wallet

VeChain Loses .6M in VET Tokens to Hacker in Attack on Buyback Wallet
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VeChain Foundation’s wallet has been compromised in a hacker attack targeting funds earmarked for the foundation’s buyback program.

Per a VeChain Foundation announcement on Dec. 13, an unknown hacker has redirected 1.1 billion VET tokens — valued at approximately $6,600,000 at press time — from the VeChain Foundation’s buyback wallet to a personal wallet address.

Security breach is likely a result of internal misconduct unnoticed due to human error

In the initial update on the incident, VeChain Foundation noted that the hack is in “no way related” to the operations of the actual standard procedure or VeChain’s hardware wallet solutions.

According to the statement, the VeChain’s security breach was likely due to misconduct of one of its staff members in the finance team. Specifically, the person has allegedly created the buyback account partly violating the standard procedure approved by the Foundation. The auditing team did not pick up the misconduct due to human error, the announcement notes.

Measures to mitigate the situation and add more clarity

In the same announcement, the Foundation has listed a number of measures designed to mitigate the incident and get more clarity. As such, the firm provided a link with the hacker’s address tagged on VeChainStats in order to instantly trace other addresses interacting with the hacker’s address.

As part of their efforts, the company notified all exchanges to monitor, blacklist and freeze all funds coming from the attacker as well as withdrawals from the corresponding exchanging wallets.

Additionally, VeChain has launched a security investigation on other crypto assets that are subject to the custody of the Foundation to prevent further breach. The Singapore-based firm also reported on the incident to law enforcement in Singapore and will keep monitoring the situation and working with cybersecurity and law enforcement professionals to add more clarity, the statement notes.

VET token slides over 4% amid the hack

VeChain is a major cryptocurrency and blockchain platform designed to enhance supply chain management and business processes. VET token is ranked the 28th largest crypto asset by market capitalization of $325 million at the time of this writing. Following the news, the token dipped over 4% with the market cap dropping to a low of $320 million. The altcoin is seeing a slight recovery at press time, according to Coin360.

VET 24-hour price chart. Source: Coin360

VET 24-hour price chart. Source: Coin360

VeChain, which is known for providing its blockchain Thor blockchain for Walmart China’s blockchain platform, has recently partnered with Cointelegraph Consulting, a division of Cointelegraph aiming to contribute to the global adoption of blockchain technology.

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