VeChain Foundation admitted to the theft of 1.1 billion VET tokens and their handling
More than a week ago, the VeChain Foundation admitted being hacked to 1.1 billion VET tokens. Shortly after that, the VeChain Foundation CEO, Sunny Lu, quickly reassured investors that the VeChain network had solved the problem and was more secure than ever.
VeChain updates the cryptocurrency community after the buyback wallet hack
Under the agreement of the Authority Masternodes, through voting, VeChain has released a patch to freeze most of the hacker’s account.
A Public Disclosure of the buyback address incident including latest updates, next steps, and the internal management decision.https://t.co/FfIvxCKcW4
— VeChain Foundation (@vechainofficial) December 22, 2019
Although the network is safe, this hacking incident highlights the weaknesses in their internal operations. Besides, Lu also explained the state of the network after the hack. He said the member responsible for monitoring the acquisition process did not follow the procedures when creating the buyback wallet. Moreover, a machine has been infected with trojans, with keylogging software, allowing hackers to get private key information. Since then, hackers have moved cryptocurrency assets out of their wallets into an account they control.
Despite this unexpected incident. However, the cryptocurrency community still praises VeChain for its quick response and a reasonable explanation for this. Therefore, the VET’s price, as well as VeChain’s reputation, are not too affected.
Live Broadcasting from Sunny Lu, VeChain https://t.co/37Jf5JaMY2
— Sunny LU, VeChain (@sunshinelu24) December 14, 2019
Latest updates from VeChain
Yesterday, VeChain Foundation released an update on the acquisition wallet hack. Through the use of cryptocurrency data analysis tools, the Foundation has compiled a list of hundreds of wallets that have received stolen funds.
The relevant exchanges have been approached with a blacklist of addresses, to prevent stolen deposits from hitting the market.
However, the Steering Committee decided that more decisive action was needed to prevent decay. On December 18, they passed a proposal to contact all Master Masterodes, to make an emergency patch to freeze these accounts.
The government voted to agree with this. As a result, hackers lost control of the vast majority of the stolen money. Currently, 469 addresses owned by the thief have been blocked by the Masternodes government, freezing about 727 million VET. Also, they will continue to work with exchanges regarding the recovery of the rest of the stolen funds.