VeChain Foundation Buyback Wallet Hacked, 1.1 Billion VET Tokens Stolen
At about 8:30 pm on December 13, the buyback wallet of the VeChain Foundation was hacked. The hacker succeeded in carting away with approximately 1.1 billion VET tokens valued at around $7,000,000. The VeChain team has attributed the theft to human error and a mismanagement of the private key during the wallet creation process.
To a great extent, the VeChain team has been transparent with its community and has clearly stated that the integrity of its mainnet and official mobile wallet has not been compromised.
They have taken the following measures including blacklisting all the addresses associated with the said hacker’s address, liaising with exchanges to monitor, blacklist and freeze funds coming from the hacker’s address, launched an investigation into the breach, and launched a security check on other digital assets under the Foundation’s custody. VeChain has also reported the incident to law enforcement agencies in Singapore, whilst enlisting the help of Hacken and its white hat community to monitor and contain the situation.
Co-founder and CEO at VeChain, Sunny Lu expressed his apologies to stakeholders and emphasized that the integrity of the mainnet is still intact. He said:
Our enterprise users and application owners can still utilize VeChainThor Public Blockchain and its peripheral technologies normally without any change… We are still working with several professional parties to try to find out exactly what happened.